AUD Rebounds Against USD Ahead of Trump-Xi Meeting
The Australian Dollar (AUD) has made a partial recovery from its earlier losses against the US Dollar (USD), trading at around 0.7035 in early European session on Thursday.
The AUD/USD pair had dipped following the release of Australian employment data for August, which showed an increase of 39.5K fresh jobs, beating estimates of 20K. However, the unemployment rate rose to 4.6%, contrary to expectations of a flat reading at 4.5%.
The upbeat job numbers have raised hopes that the Reserve Bank of Australia (RBA) may consider a near-term interest rate hike. This sentiment has been further fueled by surging US Treasury Yields, which have strengthened the US Dollar's outlook. The 10-year US Treasury Yield has reached its highest level in 19 years at 5.13%.
The upcoming meeting between US President Donald Trump and Chinese leader Xi Jinping later today is also being closely watched for potential trade developments. However, on the technical front, the AUD/USD pair remains bearish, with support levels around 0.7009 and deeper Fibonacci floors at 0.6947 and 0.6867.