The AUD/USD pair gained bullish momentum and turned positive above 0.6500 during American trading hours, with the pair trading at 0.6530, up 0.4% on the day.
US Dollar under Pressure After Weak Jobs Data
The US Dollar faced strong selling pressure after Nonfarm Payrolls (NFP) in the US rose by only 114,000 in July, missing market expectations of 175,000. The Unemployment Rate also increased to 4.3% from 4.1% in June, leading to a decline in the USD.
The benchmark 10-year US Treasury bond yield is down over 3% below 3.9%, further weighing on the USD. As a result, US stock index futures are down between 1.1% and 2.15%, reflecting a risk-averse market sentiment.
Nonfarm Payrolls FAQs: Impact on Markets
Nonfarm Payrolls (NFP) are a key component of the US monthly jobs report and can influence the decisions of the Federal Reserve. A high NFP figure indicates full employment and can lead to higher interest rates, supporting the USD. Conversely, a low NFP figure may signal economic challenges and lower interest rates, weakening the USD.
Overall, the weak jobs data in the US has put pressure on the USD and could impact various financial markets, including currencies, bonds, and stocks. Understanding the implications of NFP figures can help investors make informed decisions in a volatile market environment.