AUD/USD Holds Firm Near Two-and-a-Half-Month High

The Australian Dollar (AUD) is holding strong near its two-and-a-half-month high against the US Dollar (USD), as broad USD weakness provides support. The AUD/USD pair trades around 0.7118, up 0.43% on the day, after reaching an intraday high of 0.7129.

Strategists at Rabobank are optimistic about the AUD's prospects, predicting a shallow uptrend into next year. They attribute this to the risk of an interest rate hike by the Reserve Bank of Australia (RBA) in November and the expectation that the Federal Reserve will avoid tightening policy this year.

Australia's employment report due on Thursday could provide fresh direction for the pair, with economists forecasting a 15K job gain in July and unchanged unemployment at 4.4%.