AUD Surges Above 0.7200 Amid China Support and Strong US Jobs

The Australian Dollar (AUD) has strengthened against the US Dollar (USD), reaching near 0.7205 in the early Asian session on Monday. This gain comes despite a strong US Nonfarm Payrolls (NFP) report, which showed an increase of 162,000 jobs in August, above market expectations.

China's Finance Ministry will inject $54 billion into state-owned insurers and banks to shore up capital and support economic growth. This development is seen as supportive for the AUD, given China's significant trading relationship with Australia.

The strong US employment report may limit losses in the USD, however, with financial markets now pricing in a nearly 58.3% chance of a 25 basis points interest rate hike at the Federal Reserve's September meeting.