{
  "id": 5615789,
  "title": "Australian Dollar resumes advance as US Dollar loses post-NFP momentum",
  "url": "https://urgent.news/2026/09/04/australian-dollar-resumes-advance-as-us-dollar-loses-post-nfp-momentum",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-04T18:10:40.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/australian-dollar-resumes-advance-as-us-dollar-loses-post-nfp-momentum-202609041810"
  },
  "original_language": "en",
  "account": "The Australian Dollar (AUD) resumed its upward trend on Friday following a brief period of decline in response to a stronger-than-anticipated U.S. employment report. The pair initially dropped to 0.7173, but then reversed course as the U.S. Dollar (USD) found it challenging to capitalize on the positive figures, even as it bolstered expectations of a Federal Reserve rate hike at their September 15-16 meeting. At the time of writing, AUD/USD was trading around 0.7206, close to the levels seen on May 15.\n\nThe U.S. Nonfarm Payrolls (NFP) increased by 162K in August, exceeding market expectations for a 56K gain. July's reading was revised upward to 21K from the previously reported 23K decline, while the Unemployment Rate remained steady at 4.1%, as expected. The U.S. Dollar Index (DXY) rose initially after the employment report but subsequently lost momentum, trading around 99.10, up from 99.36 earlier. According to the CME FedWatch Tool, markets now anticipate a 60% chance of a rate increase, up from 50% prior to the NFP release.\n\nUncertainty regarding the Fed's policy path remains, with the outcome of the September meeting likely to depend on upcoming U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) reports. Recent inflation data suggests some moderation, although elevated oil prices due to the Middle East conflict continue to complicate the inflation outlook. The Australian Dollar maintains support from the Reserve Bank of Australia's (RBA) hawkish stance, with traders anticipating another rate increase this month, given inflation's persistent above the central bank's 2%-3% target range, while robust second-quarter growth provides policymakers with more room to tighten monetary policy further.\n\nLooking ahead, Australia's economic calendar will be relatively quiet next week, with the September Consumer Inflation Expectations release being the only significant domestic data point. Chinese inflation and trade data will also attract attention, given Australia's strong trade ties with China. The Reserve Bank of Australia (RBA) sets interest rates and manages monetary policy for Australia, aiming to maintain price stability and promote economic prosperity. Its primary tool for achieving this objective is adjusting interest rates, which can strengthen or weaken the Australian Dollar (AUD) depending on the direction of the move.\n\nMacroeconomic data gauges the health of an economy and can influence the value of its currency. Investors generally prefer to allocate capital to safe and growing economies, rather than precarious and shrinking ones. Key indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can impact the Australian Dollar. A strong economy might prompt the RBA to raise interest rates, further supporting the AUD. Quantitative Easing (QE) is a tool typically employed in extreme situations when lowering interest rates is insufficient to restore credit flow. Conversely, quantitative tightening (QT) occurs after QE and an economic recovery, with the RBA ceasing asset purchases and reinvestment of maturing bonds. This scenario would be positive (or bullish) for the Australian Dollar.",
  "summary": "AUD/USD resumes its advance on Friday after a brief bout of weakness following a stronger-than-expected United States (US) employment report.",
  "key_points": [
    "Australian Dollar rebounds after brief decline amid strong U.S. employment report",
    "U.S. Nonfarm Payrolls exceed expectations at 162K, revised July up to 21K",
    "FedWatch Tool now sees 60% chance of rate hike, up from 50% pre-NFP"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}