AUD/USD struggles in face of firm US dollar
- Australia Employment data eyed as well as FOMC Minutes.
- Inflation remains a concern supporting higher yields and the US dollar.
AUD/USD ended Friday flat but had travelled in a range of between 0.7288 and 0.7338 in markets that are moving more concerned over persistent inflation risks. This in turn is pushing US bond yields higher, subsequently supporting the greenback despite a dismal Nonfarm Payrolls print on Friday.
The greenback was largely unmoved by the disappointing employment report on Friday. Investors do not expect the lacklustre numbers to sway the Federal Reserve from starting a tapering of its asset purchases as early as November. The Labor Department said in its employment report on Friday that nonfarm payrolls increased by 194,000 jobs last month. Economists polled by Reuters had forecast payrolls increasing by 500,000 jobs.