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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InThe AUD/USD pair retreated from a three-year high of 0.7147 as the US Dollar staged a recovery following upbeat labor market data. The pullback was primarily driven by positive US Nonfarm Payrolls (NFP) figures, which bolstered investor confidence in the Greenback. Despite the downward pressure, the Australian Dollar managed to remain steady above the critical 0.7100 handle. Support for the pair is largely attributed to hot inflation expectations in Australia, providing a solid floor for the currency. Market participants are now closely watching the interplay between a resurgent USD and domestic inflationary pressures in Australia. This consolidation suggests a period of price discovery as the market weighs strong US employment against the Australian monetary outlook.