Australian Dollar climbs near two-month highs as NFP turns negative
The AUD/USD pair surged to its highest in nearly two months past 0.7070 earlier on Friday, following the release of the United States (US) Nonfarm Payrolls (NFP) report. The move owes nothing to Australia.
The Australian Dollar (AUD) experienced a surge, nearing two-month highs, after the release of the United States Nonfarm Payrolls (NFP) report, which turned out to be negative. The US Dollar (USD) faced substantial selling pressure, allowing the AUD to emerge as the biggest beneficiary among major currencies against the Greenback.
The NFP report revealed a significant decline of 23K jobs in July, falling short of expectations for an 80K increase, marking the first contraction since February. June's NFP data was revised down from 57K to 20K. The US Dollar Index (DXY) saw a drop, while Gold and Silver reached seven-week and solid highs, respectively. Meanwhile, the US Dollar against the Japanese Yen (USD/JPY) retraced Thursday's gains and dropped below the 157.00 level.
Richmond Fed President Thomas Barkin described the labor market as "weak balance," with low hiring and firing. He acknowledged the poor data but emphasized the strong corporate earnings, which he is monitoring for potential links to the job market. Iran's parliament speaker, Mohammad Bagher Ghalibaf, accused US President Donald Trump of staging "theater diplomacy" in a post on X, as the two nations presented contrasting accounts of their engagement.
On the 4-hour chart, AUD/USD is currently trading at 0.7060, maintaining a bullish near-term bias. The pair is approaching the horizontal resistance level at 0.7064, with key support at 0.7049 and broader trend support at 0.7035.
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