Australian Dollar rises as soft US jobs, GDP beat lift AUD, PMIs ahead
The Australian Dollar advanced on Wednesday versus the US Dollar after economic data in the US revealed the labour market weakened slightly, while the Greenback dipped on intervention speculation in the FX markets.
The Australian Dollar experienced an upward trend against the US Dollar on Wednesday, fueled by softer US labor market data and a dip in the Greenback due to speculation of intervention in the foreign exchange markets. As Wall Street concluded the trading session on a positive note, the AUD/USD exchange rate climbed to 0.7169, marking a 0.35% increase from its previous level.
The US Dollar Index (DXY) also experienced a slight decrease, falling by 0.08% to reach 99.57. Data from the US disclosed that private hiring slowed, with the ADP National Employment Change in August falling from 46K to 38K, falling short of the anticipated 47K. Geopolitical tensions, particularly surrounding US President Donald Trump's warning about potential renewed attacks against Iran, contributed to upward pressure on energy prices and global bond yields.
This led markets to price in a 25-basis-point rate hike by the Federal Reserve at the September 16 meeting, with a 67.50% probability according to Prime Terminal. The Reserve Bank of Australia (RBA) remains focused on combating inflation, with upcoming economic indicators such as S&P Global Services and Composite PMIs, as well as Trade Balance data, set to be closely monitored.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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