AUD Surges Against USD Ahead of Soft US NFP Expectations

The Australian Dollar (AUD) has strengthened against the US Dollar (USD) by 0.17% to around 0.6640 during the European trading session on Friday.

This gain comes despite expectations of more interest rate hikes from the Reserve Bank of Australia (RBA), with strategists at Brown Brothers Harriman (BBH) noting that RBA Governor Michele Bullock's recent comments suggest less urgency for additional tightening.

The US Dollar, on the other hand, is trading relatively subdued ahead of the release of the United States' Nonfarm Payrolls (NFP) data for September, which will be published at 12:30 GMT. The US Dollar Index (DXY) has dipped to around 102.00.

Nearly all major currencies are down against the USD, with the AUD being an exception, and strategists anticipate a potentially softer NFP headline print than last month's outcome of +162k.