The Australian Dollar retreats from recent peaks as markets shift focus to upcoming US jobs data and geopolitical developments.
The Australian Dollar (AUD) eased against the US Dollar (USD) on Thursday, dropping to 0.7040 after reaching a three-week high of 0.7064. The pullback follows a brief rally driven by stronger-than-expected Australian trade data, though broader market sentiment remains cautious ahead of key US economic releases.
Australia’s June Trade Balance showed a surprise surplus of AUD 1.929 million, defying forecasts of an AUD 1.1 million deficit. The surplus, fueled by a surge in commodity exports to four-year highs, followed a revised May deficit of AUD 2.367 million. Meanwhile, US data disappointed, with July ADP employment rising just 44K, below the 70K consensus and June’s 98K print.
Market attention now turns to Friday’s US Nonfarm Payrolls report, which could influence Federal Reserve policy expectations. Risk sentiment remains supported by reports of a potential safe shipping route in the Strait of Hormuz, though G10 currency moves have been limited this week.