AUD Extends Losses After July Jobs Report

The AUD is the weakest performer in the G10 space, AUD/USD sits ~0.7% lower. The Unemployment Rate ticked higher in July to 3.7%, higher than the expected rise to 3.6%, and there was a net loss of 14.6k jobs.

• AUD/USD prints at $0.6380/85, a touch off the lowest level since November 2022. Support now comes in at $0.6285, low from 4 Nov 2022.
• Kiwi is also pressured after the negative lead from regional equities weighed in early trade before spillover from the AUD saw losses extended. NZD/USD sits at touch above the $0.59 handle, a break through here opens $0.5813, a Fibonacci projection.
• Yen is little changed and has dealt in narrow ranges for the most part.
• Elsewhere in G-10, the Scandies are pressured however liquidity is generally poor in Asia.
• Cross asset wise; US Tsy Yields are ~3bps firmer across the curve and BBDXY is up ~0.1%. The Hang Seng has recouped an early ~2.3% loss to sit little changed, however spillover into FX is limited at this stage.
• There is a thin docket in Europe today, further out Initial Jobless Claims headlines an otherwise thin calendar.