AUD/USD Hinges on US Employment Data as Pair Consolidates After Multi-Month High
The Australian dollar (AUD/USD) has been on a tear in early trade on Tuesday following a pullback after hitting a multi-month high. The rally was driven by news that Japanese and U.S. authorities had stepped in to support the embattled yen.
Despite signs of a potential breakthrough in the Middle East and sliding oil prices easing rate hike fears, traders are bracing for key U.S. employment data set for release later this week.
The employment data includes weekly initial jobless claims, last month's ISM Non-Manufacturing PMI number, and the July jobs report that publishes average hourly earnings, nonfarm payrolls, and the unemployment rate.
A hotter-than-expected report would be interpreted as hawkish for the Greenback, putting downward pressure on the Aussie dollar. On the other hand, a softer-than-anticipated reading on the labor market would likely weaken the U.S. dollar, helping place a tailwind behind the AUD/USD.