AUD Surges Past 0.7070 as Weaker-than-Expected NFP Report Hits USD

The Australian Dollar (AUD) has reached its highest level in nearly two months against the US Dollar (USD), driven by the weaker-than-expected Nonfarm Payrolls (NFP) report from the United States. The NFP report showed a loss of 23,000 jobs in July, compared to forecasts of an 80,000 gain.

The unexpected decline in the labor market has led to broad selling pressure on the US Dollar, with the AUD/USD pair surging past the 0.7070 barrier and reaching its best level since mid-June. The Australian currency is also gaining against other major currencies.

Richmond Fed President Thomas Barkin described the labor market as 'low hire, low fire,' rather than in decline, but noted that corporate earnings are strong and growing nicely.