AUD Edges Up Against USD Ahead of US NFP Data Release

The Australian Dollar is trading slightly higher against the US Dollar ahead of the release of US Nonfarm Payrolls (NFP) data for July.

According to TD Securities, the NFP data is expected to show a modest increase in payrolls to 70k, with a steady pace of job creation.

The bank cautions that an upside surprise could add fuel to the fire for interest rate hikes, particularly as the US unemployment rate remains at 4.2%.

The Federal Reserve has stopped providing forward guidance on interest rates, and there is a 54.7% chance of a rate hike in the September policy meeting, according to the CME FedWatch tool.

Meanwhile, the Australian Dollar is expected to trade broadly sideways, with investors shifting their focus to the Reserve Bank of Australia's (RBA) monetary policy decision on Tuesday.