The AUD/USD slipped in the wake of stronger-than-expected U.S. labor market data and subdued Australian inflation figures, which raised concerns over the divergence in monetary policy between the two economies. The Australian dollar weakened as inflation data fell short of expectations, suggesting less urgency for the Reserve Bank of Australia to tighten monetary policy further. Meanwhile, robust U.S. employment numbers reinforced expectations of the Federal Reserve maintaining a hawkish stance.
Further pressuring the Australian dollar, former U.S. President Donald Trump made fresh geopolitical threats, contributing to a rise in demand for safe-haven currencies. This combination of domestic and global factors has placed downward pressure on the AUD/USD, driving it closer to its recent lows. Traders will closely watch upcoming central bank comments for clearer guidance on the pair’s trajectory.
