AUD/USD Surges on Waller's Dovish Comments

The Australian Dollar (AUD) rose against the US Dollar (USD) on Thursday due to comments from Federal Reserve Governor Waller, who expressed moderate dovishness ahead of the September meeting. This shift in tone led to a decrease in bets for a 25 bps rate hike by the Fed.

The AUD/USD traded at 0.7200, up 0.44%, while the US Dollar Index (DXY) fell 0.58% to 99.00. The Institute for Supply Management (ISM) reported an improvement in business activity in the US, with a services PMI of 55.4 in August, exceeding forecasts.

The Initial Jobless Claims for the week ending August 29 ticked higher from 204K to 206K, above estimates of 205K. Fed Governor Waller indicated support for keeping rates steady, contingent on the disinflation trend, but cautioned that a strong US CPI report next week could lead to a rate hike.