**AUD/USD Slides Toward 0.6450 Despite Weak US Non-Farm Payrolls: Analysis and Broader Market Context**
*Based on the original article by FXStreet’s Anil Panchal, with additional insights and context provided for a comprehensive overview.*
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### Overview of Recent AUD/USD Movement
The AUD/USD pair saw a notable decline, falling toward the 0.6450 level even after the release of softer-than-anticipated US Non-Farm Payrolls (NFP) data. Typically, weak US jobs numbers would weigh on the US dollar and offer support to other major currencies like the Australian dollar, but in this instance, other fundamental factors overpowered the impact of the NFP report.
#### Key Highlights:
– AUD/USD retreated to levels near 0.6450 during the latest trading session.
– The US NFP report indicated weaker job creation, but the US dollar did not lose significant ground.
– Broader market sentiment, shifts in risk appetite, and domestic Australian factors contributed to the AUD’s underperformance.
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### US NFP Data: Short-term Impact on Currency Markets
The NFP report for the period showed job creation coming in below estimates:
– The US economy added approximately 175,000 jobs, missing the consensus expectation of around 185,000.
– The unemployment rate ticked up slightly to 4.0 percent from the previous 3.9 percent.
– Average Hourly Earnings, a proxy for wage inflation, rose at a moderate 0.3 percent over the previous month, marginally below forecast.
**Market Response:**
– The US dollar initially wobbled but quickly regained composure.
– Treasuries saw a modest rally, with yields dipping as traders speculated on future Federal Reserve rate decisions.
**Why AUD/USD Did Not Rally:**
– Persistent concerns about global economic growth and China’s economic outlook, which have a direct effect on the Australian dollar due to Australia’s trade reliance on China.
– A firm stance from the Federal Reserve on keeping rates higher for longer, which supports the US dollar.
– General risk-off mood in global financial markets, reducing appetite for risk-sensitive currencies like the AUD.
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### Australian Economic and Policy Context
#### Recent Australian Data and RBA Outlook:
– Australia’s economic releases have painted a mixed picture in recent weeks.
– Retail sales figures have been softer than expected, while employment data have shown slowing momentum.
– The Reserve Bank of Australia (RBA) decided to keep interest rates steady at its recent policy meeting, citing slowing consumer demand and progress in dampening inflation pressures.
**RBA’s Balance:**
– The central bank remains cautious, aware of lingering inflation but also the drag on households from higher borrowing costs.
– Market participants see reduced odds for further rate hikes, with some even speculating on the timing of potential policy easing if domestic demand continues to weaken.
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### Global Macro Developments Influencing AUD/USD
**US Dollar Strength:**
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