AUD and NZD Hang Fire as US Jobs Report Looms

The Australian and New Zealand dollars remain steady as investors await two key events: the July US jobs report and the Reserve Bank of Australia's (RBA) decision on August 11th. Economists expect no change in interest rates, leaving the Aussie dollar (AUD) and Kiwi dollar (NZD) to be influenced by US data.

A Reuters poll showed that all 37 economists surveyed believe the RBA will keep rates at 4.35%. This is not expected to have a significant impact on the markets, but rather serve as a non-event. The focus instead shifts to US jobs data and its potential effect on Federal Reserve interest rate decisions.

A strong payrolls number could increase the likelihood of a Fed hike in September, leading to higher short-term US yields and widening the yield gap versus Australia and New Zealand. This would favor the US dollar over AUD/USD and NZD/USD, potentially weighing on both currencies.