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Australian dollar pressured by US data
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Published on 08.08.2016 15:44

The Australian dollar has pulled back today after a solid round of data ou5t of the US raised expectations of an interest rate hike next month.

At 7.50am (GMT) th3e Aussie dollar was trading at US76.06c down from US76.16c at close of trading on Friday.

After reaching a high of US76.62c late last Friday, the Australian dollar has pulled back sharply after a stellar non-farm payrolls report reignited beliefs that the US Federal Reserve will continue to raise rates next month.

The latest release of the nonfarm payrolls shoed the US economy added 255,000 jobs against expectations for a figure of 180,000 blowing away expectations while the unemployment rate remained steady at 4.9 percent.

The figures were a big turnaround from last month and shows the US economy near full employment which should pave the way for the US central bank to tighten monetary policy next month.

"This was another strong report that checked most, if not all of the significant boxes," said Curt Long, chief economist at the National Association of Federal Credit Unions. "The labor market should remain strong as long as consumers maintain their robust spending pace."

This week’s retail sales figures from the US due for release on Thursday will also be in the spotlight with a strong figure likely to cement an interest rate hike next month.


Andrew Masters

Analyst

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