The AUD/USD pair takes a hit after the US Nonfarm Payrolls (NFP) data for August is released, causing the Australian Dollar to plummet to near 0.6700. Disappointment from the US job growth data has boosted hopes for a Fed interest rate cut, leading to increased buying interest in the US Dollar.
The US Dollar Index (DXY) climbs to near 101.40 as the US NFP report shows weaker job demand than expected. While the fresh payrolls came in lower at 142K, the Unemployment Rate fell to 4.2%, prompting expectations of aggressive interest rate cuts by the Fed.
In the Asia-Pacific region, the Australian Dollar performs poorly despite RBA Governor Michele Bullock’s hawkish interest rate guidance. Bullock’s speech indicated that the RBA is unlikely to cut interest rates this year, causing the AUD to weaken.
Overall, the disappointing US job data has sparked speculation that the Fed may begin reducing interest rates sooner than expected, which could have significant implications for the global financial markets and individual investors. It’s crucial to stay informed and monitor the latest developments to make informed decisions about your finances.