April US jobs data showed 115K additions, beating forecasts, while softer wage growth weighed on the USD.
The AUD/USD pair climbed above 0.7240 on Friday, driven by a mix of softer US wage growth and heightened Middle East tensions. US Nonfarm Payrolls rose by 115K in April, surpassing expectations of 62K, while the unemployment rate remained at 4.3%. Average Hourly Earnings slowed to 0.2% month-over-month, easing inflation concerns.
Geopolitical risks added volatility as US airstrikes targeted Iranian-linked tankers in the Strait of Hormuz. Iran’s military warned of a forceful response to any aggression, briefly lifting safe-haven demand. However, the USD held near weekly lows, with traders focusing on labor data over geopolitical risks.
Technical analysis shows AUD/USD trading at 0.7243, above key moving averages, suggesting bullish momentum. Support levels near 0.7226 and 0.7178 are holding, absorbing minor dips.