Forex
AUD Resumes Advance as USD Loses Momentum on NFP Data
The Australian Dollar (AUD) has resumed its advance against the US Dollar (USD), reversing a brief decline following strong US employment data. The pair initially fell to 0.7173 but quickly recovered as the USD struggled to capitalize on the upbeat figures.
The strong US employment report, which saw a gain of 162K in August, above market expectations for 56K, boosted expectations of a Federal Reserve (Fed) rate hike at its September 15-16 meeting. However, the USD's initial jump soon lost momentum, and it now trades around 99.10.
The AUD remains supported by the Reserve Bank of Australia's (RBA) hawkish stance, with traders anticipating another rate increase later this month as inflation sits above the central bank's 2%-3% target band.