AUD/USD Breaks Above 0.7100 Amid Soft US Data and Hawkish RBA

The Australian dollar has broken above the 0.7100 level for the first time since early June, thanks to softer US data and a hawkish Reserve Bank of Australia (RBA) stance.

Last week's employment report showed stronger-than-expected growth, with a 76,300 job increase, but the RBA still expects the unemployment rate to rise to 4.5% by the end of 2026.

A cooler-than-expected US consumer price index (CPI) and producer price index (PPI) reports, along with a sharp drop in the University of Michigan's preliminary August consumer sentiment reading, have weighed on the greenback.