- AUD/USD falls sharply by more than 100 pips on US economic data.
- The US Nonfarm Payrolls report almost tripled the market’s expectations for job creation.
- US ISM Non-Manufacturing PMI is back at expansionary territory.
AUD/USD collapsed after US economic data on Friday showed that the labor market remains tight, and it would keep the US Federal Reserve under pressure to bring down inflation to the 2% target. That, alongside the US Dollar paring Wedneadys losses on Thursday, are the reasons for today’s price action. At the time of writing, the AUD/USD exchanges hands at around 0.6970s.
US jobs data surprised investors, as further Fed action is expected
Wall Street opened the last trading session of the week with losses. The US Department of Labor (DoL) revealed January data that surprised investors, with Nonfarm Payrolls smashing expectations after the economy created 517K jobs in the month, exceeding estimates for the creation of just 185K jobs. Consequently, the Unemployment Rate fell to 3.4% from 3.5%, while December’s figures were revised upward.
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