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Australian dollar ticks higher versus US dollar ahead of NFP

AUD/USD was around 0.7037 and held above the 20-day EMA near 0.7004 as markets looked to July US Nonfarm Payrolls.

Reported · Written up by our desk · Major Pairs

The Australian dollar was slightly higher versus the US dollar in European trade, edging toward the 0.7040 area as investors positioned for the release of US July Nonfarm Payrolls later in the session, according to FXStreet.

FXStreet cited TD Securities expectations for payrolls to rise modestly, suggesting a possible 70k increase, while warning that an upside surprise could strengthen rate hike expectations. The outlet also noted that soft payrolls may not fully offset inflation concerns, and that the Fed’s policy outlook is sensitive given the lack of forward guidance.

FXStreet added that the US Dollar Index was marginally lower near 99.92 as of the update, and pointed to CME FedWatch showing a 54.7% chance the Fed raises rates at its September meeting. It said AUD is also awaiting the Reserve Bank of Australia decision on Tuesday.

On the Australian side, FXStreet reported Standard Chartered’s view that the RBA will keep the cash rate unchanged at 4.35% on August 11, supported by data showing trimmed-mean inflation held at 0.8% quarter over quarter. The story said the market expected AUD/USD to trade broadly sideways, with the pair remaining constructive while above the 20-day EMA.

Latest closeDollar index 99.98 ▲0.3%

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