US Nonfarm Payrolls fell 23K in July, missing forecasts and sparking broad USD selling, lifting the Australian dollar.
The AUD/USD pair climbed to nearly two-month highs above 0.7070 after US Nonfarm Payrolls contracted by 23K in July, defying expectations of an 80K gain. The decline marked the first outright drop since February, with June’s figure also revised down to 20K from 57K.
The weaker-than-expected jobs data triggered a sharp sell-off in the USD, with the US Dollar Index (DXY) extending losses. Gold and silver rallied to multi-week highs, while USD/JPY retreated below 157.00, erasing Thursday’s gains.
Richmond Fed President Thomas Barkin noted the labor market appeared in weak balance, though he highlighted strong corporate earnings as a counterpoint. The data reinforced expectations of a cooling US economy, driving risk assets higher.