Financial markets have dialled back expectations of rate cuts by the Federal Reserve and the Reserve Bank after robust US jobs data soothed concerns about an imminent slowdown in the world’s largest economy.

US employers added 147,000 jobs in June, beating consensus expectations for a gain of 106,000. The unemployment rate fell to 4.1 per cent from 4.2 per cent in May and compared with forecasts of 4.3 per cent.