AUD Surges Against USD Amid Soft US Data

The Australian Dollar (AUD) surged against the US Dollar (USD) on Wednesday, gaining around 0.20% to trade near 0.7060.

This rise was largely due to softer US economic data, which reduced expectations that the Federal Reserve may adopt a more aggressive policy stance.

The US Labor Market figures were disappointing, with private employers adding only 44,000 jobs in July, well below the market forecast of 70,000 and down from 98,000 in June.

The services sector remained in expansion territory, but the employment component dropped to 47.4, signaling softer hiring conditions.

Additionally, reports that Washington had lifted selected sanctions related to Iran, including restrictions on two aircraft and three airlines associated with the Islamic Revolutionary Guard Corps (IRGC), weighed down the US Dollar further.