AUD/USD drops toward 0.7350 on NFP-inspired USD strength
- AUD/USD came under renewed bearish pressure on Friday.
- US Dollar Index is pushing higher toward 93.00.
- Nonfarm Payrolls in the US rose more than expected in July.
After spending the majority of the day moving sideways a little below 0.7400, the AUD/USD pair turned south and was last seen losing 0.63% on a daily basis at 0.7357.
USD gathers strength as US labour market continues to improve
The renewed USD strength is weighing heavily on AUD/USD in the second half of the day. The data published by the US Bureau of Labor Statistics showed on Friday that Nonfarm Payrolls in the US surged by 943,000 in July, beating the market expectation for an increase of 870,000. Additionally, the Unemployment Rate declined to 5.4% from 5.9% in June.
Commenting on the data, "with these figures, has the US economy made "substantial further progress? That is the term the all-powerful Federal Reserve set for withdrawing stimulus," noted FXStreet analyst Yohay Elam. "The answer seems to be positive."
Reflecting the positive impact of the strong jobs report on the greenback's performance against its rivals, the US Dollar Index is trading at its highest level since July 27 at 92.76, rising 0.55% on a daily basis.
In the meantime, the benchmark 10-year US Treasury bond yield is up nearly 5% on a daily basis, providing an additional boost to the USD ahead of the weekend.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
