- ANZ Job Advertisements rebound strongly in June in Australia.
- US Dollar Index preserves Friday’s NFP-inspired gains.
- Choppy FX action is likely to continue in the remainder of the day.
The AUD/USD pair, which closed the week below the 0.70 mark after losing 40 pips on Friday, is staying relatively quiet on Monday in the absence of fundamental drivers. As of writing, the pair was posting small daily gains at 0.6985.
Last Friday, the U.S. Bureau of Labor Statistics reported that nonfarm payrolls in June increased by 224,000 to beat the market expectation of 160,000 by a wide margin. With the strong jobs data forcing investors to reassess the probability of multiple Fed rate cuts in the remainder of the year, the greenback gathered strength and the US Dollar Index rose to its best level in two weeks at 97.44 before retreating slightly and finishing the week at 97.17.
On Monday, the US Dollar Index seems to be having a tough time setting its next short-term direction and continues to move sideways near 97.30, not allowing the pair to climb above the 0.70 mark.
Earlier in the day, the ANZ Job Advertisements came in at +4.6% in June following May’s 8.2% decline but the AUD didn’t pay any attention to this data. On Tuesday, the National Bank of Australia will publish the Business Confidence and Business Conditions indexes.
Technical levels to watch for
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