AUD/USD Bounces Back as Dollar Rally Fades After Strong US Jobs Report
The AUD/USD currency pair rebounded on Friday after an early drop in response to a stronger US jobs report. The pair fell to 0.7173 but then regained ground as the dollar's initial gains failed to stick.
Nonfarm Payrolls rose by 162K in August, exceeding forecasts for 56K, while July was revised to a 21K gain from an initially reported 23K decline. The Unemployment Rate remained at 4.1%.
The dollar's post-data bounce faded, with the US Dollar Index (DXY) settling around 99.10 after touching 99.36. Pricing tracked by the CME FedWatch Tool indicates a roughly 60% probability of a Federal Reserve rate hike at the September meeting, up from 50% before the report.
The Aussie dollar has been underpinned by the Reserve Bank of Australia's hawkish policy stance and resilient second-quarter growth. Support for the currency remains strong despite rising expectations for a US interest rate hike.