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Australian Dollar weakens as disappointing US labor data increases risk-off sentiment. US NFP report came in below forecasts, while wages slowed, raising concerns over economic resilience. China’s trade data revealed weaker imports, amplifying pressure on the Aussie. Technical indicators suggest increasing downside risk as AUD/USD approaches key support levels. The Australian Dollar extended losses on Friday against the USD after the release of the US Nonfarm Payrolls (NFP) report. The AUD/USD pair struggled to recover as risk sentiment deteriorated with traders reacting to weaker-than-expected job growth and softer wage gains. Meanwhile, China’s trade balance data showed an unexpected drop in imports, raising concerns over slowing demand, which weighed further on the Australian Dollar. Daily digest market movers: Australian Dollar under pressure after NFP miss The US Nonfarm Payrolls report showed job creation slowed in February with 151,000 new jobs added, falling short of the 160,000 estimate. While still an improvement from January’s 125,000 figure, the weaker hiring pace raised concerns about labor market resilience. Average Hourly Earnings growth eased to 0.3% MoM, down from 0.4% in January, reinforcing expectations that wage pressure may be cooling. Meanwhile, the US Unemployment Rate edged up to 4.1%, signaling potential softening in labor conditions. China’s trade surplus widened to $170.52 billion in February, exceeding forecasts. However, a sharp 8.4% decline in imports raised concerns over weakening domestic demand, which could negatively impact Australia’s export-driven economy. The Reserve Bank of Australia (RBA) maintains a cautious outlook, expecting economic growth to moderate toward 2% by 2025. While this stance has supported AUD in the past, investors are becoming wary of possible policy shifts in response to inflation and labor market conditions. Risk sentiment soured as investors reassessed global trade developments. Canada delayed its planned second round of retaliatory tariffs against the US until April 2, following…

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Filed under: News - @ March 8, 2025 7:23 pm