AUD/USD is currently approaching a monthly low as it falls back from a monthly high (0.6916) after the US Consumer Price Index (CPI) reports assure the market of another 75bp Federal Reserve rate hike. Data prints from Australia might end the recent decline in the exchange rate as job growth is expected to recover in August.
The currency pair snaps the series of higher highs and lows from last week on the back of US Dollar strength, and the exchange rate may further decline in the next days amid failed attempts to close above the 50-Day SMA (0.6892).
The market expects the Australian Employment report to support the exchange rate before the FOMC meeting as the economy is expected to create 35.0K jobs in August.
Increased job opportunities will boost the AUD/USD as it raises the Reserve Bank of Australia’s (RBA) scope to implement a restrictive policy. Should the job rate decrease or remain stagnant, the RBA will change gears as Governor Philip Lowe and Co. plan to keep the “economy on an even keel.”