In the American session, the AUD/USD stays on the back foot.
Following a loss on Wednesday, the US Dollar Index regains its footing.
Australia’s uninspiring labor market report impacted on the AUD.
During American market hours, the AUD/USD pair came under fresh bearish pressure, and it was last seen trading at 0.7417, down 0.85 percent on the day. If the AUD/USD falls below 0.7109, it will revert to its lowest level since December.
Earlier in the day, Australian data revealed that the unemployment rate fell to 4.9 percent in June, down from 5.1 percent in May. The underlying specifics of the jobs report revealed a grim image, despite the fact that this result was substantially better than the market projection of 5.5 percent. Following a rise of 115.2K in May, the Employment Change came in at 29.1K, falling short of analysts’ expectations of 30K. Consumer Inflation Expectations, meanwhile, fell to 3.7 percent from 4.4 percent.
The broad-based USD strength caused the AUD/USD to continue its daily drop in the second half of the day. The US Dollar Index is currently up 0.32 percent at 92.67, after losing 0.44 percent following FOMC Chairman Jerome Powell’s dovish statements on Wednesday.
Initial Jobless Claims fell to 360K in the week ending July 10 according to the US Department of Labor. The NY Empire State Manufacturing Index increased to 43 in July from 17.4 in June, while the Philadelphia Fed Manufacturing Index decreased to 21.9 from 30.7. Finally, Industrial Production increased by 0.7 percent in June, versus 0.4 percent market expectations.
On Friday, there will be no high-tier data releases from Australia, and the USD’s market value is anticipated to continue to dominate AUD/USD movement./n
