AUD/USD Surges 0.59% Amid US Dollar Weakness

The AUD/USD exchange rate rose by 0.59% on August 7th to $0.70718, following a softer-than-expected US Non-Farm Payrolls report.

The report showed a deceleration in job growth and an unexpected uptick in the unemployment rate, which led to a swift repricing of Federal Reserve interest rate expectations.

Treasury yields fell across the curve as market participants increased bets on a more aggressive easing cycle from the Fed in the final months of the year, contributing to US dollar weakness.

The Australian dollar benefited from this broad-based US dollar weakness and also from the divergence in monetary policy trajectories between the US Federal Reserve and the Reserve Bank of Australia.