Australian dollar recovers its daily losses following the release of mild employment data.

The Australian Dollar (AUD) has recovered its intraday losses following Thursday’s mild employment statistics report.

The commodity-linked AUD struggled as lower demand and a surplus of commodities placed pressure on market pricing.

However, the Australian Dollar (AUD) struggled against the US Dollar (USD) due to falling copper and iron ore prices. The decrease worsened by weaker credit data from China, which, along with lower demand and a commodity surplus, has put additional pressure on markets. However,
The AUDUSD pair is experiencing negative pressure. as investors assess the Reserve Bank of Australia (RBA)’s monetary policy position. Despite strong wage growth in the second quarter, which has kept the RBA’s outlook hawkish, RBA Governor Michele Bullock has denied the idea of rate decreases within the next six months. Bullock stated that the Australian central bank remains alert about inflation threats and prepared to raise interest rates further if necessary.

The US Dollar fell after a mild Consumer Price Index data release on Wednesday.

The US Dollar is under pressure following Wednesday’s Consumer Price Index (CPI) data, which indicated a slight increase in July’s annual US inflation rate. Investors are likely to debate how much the Federal Reserve (Fed) will lower interest rates in September. While traders are leaning for a more modest 25 basis point decrease, with a 60% chance, a 50 basis point cut is still possible . CME FedWatch predicts a 36% possibility of a bigger decrease in September.

Daily Market Movers: Australian Dollar Edges Higher Following Jobs Data.

Australian Employment Change in July was recorded at 58.2K, exceeding the predicted 20.0K and the prior reading of 52.3K. However, the unemployment rate rose to 4.2%, above market expectations of a stable 4.1%. In addition, consumer inflation expectations for August increased to 4.5%, up from 4.3% previously.
On Wednesday, Federal Reserve Bank of Chicago President Austan Goolsbee indicated greater concern about the labor market rather than inflation, citing recent pricing pressure improvements in the face of lackluster job data. According to Goolsbee, the current economic conditions will determine the magnitude of rate decreases as per Bloomberg.

US headline Consumer Price Index (CPI) increased 2.9% year on year in July.

The US headline Consumer Price Index (CPI) increased 2.9% year on year in July, slightly lower than the 3% increase in June and below market expectations. The Core CPI, which excludes food and energy, rose 3.2% year on year, slightly lower than the 3.3% increase in June but in line with market expectations.
On Tuesday, Atlanta Fed President Raphael Bostic noted that recent economic data has reinforced his confidence that the Fed will meet its 2% inflation target. However, Bostic stated that more data needed before he will approve a rate cut, according to Reuters.
The US Producer Price Index (PPI) increased 2.2% year on year in July from 2.7% in June, falling short of the market consensus of 2.3%. Meanwhile, the core PPI increased by 2.4% year over year. Bloomberg reports that the Fed will not be prepared to drop rates at its next meeting in September.