AUD Climbs for Fourth Day Despite Strong US Jobs Data
The Australian dollar is experiencing a fourth consecutive day of gains, reaching levels as high as 0.7218 against the US dollar despite a strong jobs report in August.
US nonfarm payrolls released on September 4 exceeded expectations with a gain of 162,000 in August, lifting the implied probability of a September Fed rate hike to 58.4%.
However, the greenback failed to build on this momentum, allowing AUD/USD to climb as the dollar's reaction was complicated by geopolitics and market liquidity thinning due to the US Labour Day holiday.
The RBA's cash rate of 4.35% and solid demand for Australia's key exports such as iron ore and copper are providing fundamental support for the Australian dollar, despite expectations of a maximum one more hike from the Fed.