FX.co ★ Aussie Holds Near 10-Week Top

The Australian dollar traded above $0.71, hovering near a ten-week high, supported by a broadly weaker US dollar and improving domestic economic sentiment. The greenback came under pressure after softer-than-expected US economic data led traders to scale back expectations for further Federal Reserve rate hikes, heightening concerns about US growth prospects and eroding the dollar’s yield advantage.

The Aussie also benefited from firmer domestic sentiment after the Reserve Bank of Australia left its cash rate unchanged at 4.35%, following three increases earlier in the year. Australian consumer confidence climbed to a nine-month high in August, reinforcing expectations that the economy remains resilient.

Investors are now turning their attention to Thursday’s labor market report. Employment is projected to increase by 15,000 in July, following a robust 76,300 gain in June, while the unemployment rate is expected to hold at 4.4%. Quarterly wages data are scheduled for release on Wednesday, and markets will also be watching a speech by RBA Deputy Governor Andrew Hauser.