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AUD/USD rises toward 0.706 as USD weakens on softer US data
AUD/USD is up 0.20% on the day near 0.7060, after ADP and ISM Services data pointed to slower hiring and slightly softer expansion.
Australian Dollar strength pushed AUD/USD to around 0.7060 on Wednesday, up about 0.20% for the day, as the US dollar stayed broadly under pressure, according to FXStreet.
FXStreet cited market reactions to softer-than-expected US data, including ADP showing private-sector employment up 44K jobs in July versus the 70K forecast, and the ISM Services PMI at 54.1 versus 54.5 expected. The Employment Index within the ISM services measure fell to 47.4, signaling softer hiring conditions.
FXStreet also pointed to a separate drag on the greenback tied to reporting that the US lifted selected Iran-related sanctions, removing restrictions on two aircraft and three airlines linked to the IRGC, in a potential de-escalatory step amid ongoing negotiations involving the US, Oman, and Iran.
On the AUD side, attention remains on the Reserve Bank of Australia policy decision scheduled for August 11. FXStreet noted that expectations for another RBA rate hike have been scaled back, with the ASX RBA Rate Tracker showing the probability falling from 43% on July 24 to 3% currently.