AUD/USD Rises as Softer US Data Weighs on USD

The Australian Dollar has gained strength against its US counterpart as softer-than-expected US economic data and improved risk sentiment weigh on the USD. The AUD/USD pair rose 0.20% to around 0.7060 at the time of writing.

US labor market data, including the ADP Employment Change report, showed a private-sector employment increase of just 44K jobs in July, below the market forecast of 70K. The Institute for Supply Management (ISM) Services Purchasing Managers Index (PMI) also came in at 54.1, slightly below expectations.

Additionally, reports suggest that the US has lifted selected Iran-related sanctions, removing restrictions on two aircraft and three airlines linked to the Islamic Revolutionary Guard Corps (IRGC). This move is seen as a potential de-escalatory step in negotiations between the US, Oman, and Iran.