AUD/USD Breaks Above 0.7100 as Softer US Data Weighs on Greenback

The AUD/USD pair broke above the 0.7100 level for the first time since early June, driven by softer US data and a hawkish bias from the Reserve Bank of Australia (RBA).

Last week's employment report showed a stronger-than-expected outcome, with employment rising by 76,300, well above the +15,000 consensus forecast.

The RBA kept rates on hold and maintained a hawkish bias, while cooler-than-expected US economic data weighed on the greenback.

A softer US consumer price index (CPI) and producer price index (PPI) reports, combined with a sharp drop in the University of Michigan's preliminary August consumer sentiment reading, have lifted the odds of the Federal Reserve remaining on hold at its September meeting to around 70%.