AUD Bounces Back on Strong Job Data Ahead of Trump-Xi Meeting
The Australian Dollar (AUD) rebounded from early losses against the US Dollar (USD) on Thursday, following the release of August's employment data. The AUD/USD pair rose to around 0.7035 in the European session after Australia's economy created 39.5K fresh jobs in August, exceeding estimates of 20K.
The increase in employment was offset by a higher-than-expected unemployment rate of 4.6%, which was expected to remain flat at 4.5%. This mixed reading may prompt the Reserve Bank of Australia (RBA) to consider a near-term interest rate hike.
The US Treasury yields have strengthened the USD's outlook, reaching a fresh 19-year high near 5.13%. The US Dollar Index (DXY), which gauges the Greenback's value against six major currencies, traded close to its eight-week high of 101.23 on Thursday.