Weaker US jobs data reduces Fed tightening expectations, lifting risk assets and the Australian Dollar.
The Australian Dollar climbed 0.23% to 0.6940 against the USD in European trading, supported by a softer US Dollar and diminished Fed rate hike prospects. The move follows June US Nonfarm Payrolls data showing just 57K jobs added, well below expectations.
Earlier this week, markets priced a 64% chance of a September Fed rate hike, but that probability has since fallen to 53.2%. The US Dollar Index slipped 0.1% to 100.75, while S&P 500 futures rose 0.22% to 7,500, reflecting improved risk sentiment.
The AUD outperformed major peers, including the Canadian Dollar, as traders reassessed monetary policy outlooks. No immediate market reaction data was reported beyond the price moves.