AUD Edges Up as NFP Data Looms with Hike Fears on the Horizon

The Australian Dollar (AUD) has edged up against the US Dollar (USD), trading near 0.7040 during the European session on Friday.

The movement comes ahead of the release of the July Nonfarm Payrolls (NFP) data from the United States, which is expected to show a modest but steady pace of job creation.

According to TD Securities, payrolls are likely to edge up to 70k, while an upside surprise could add fuel to hikes, particularly with the UER rate likely to stay at 4.2%.

The bank also notes that soft payrolls may ease hike fears, but inflation keeps markets nervous and the reaction asymmetric.