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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move reflecting the resilience of the US labor market and its direct impact on commodity-linked currencies, the Australian Dollar faced significant selling pressure. According to reports, a strong US Nonfarm Payrolls report boosted the odds of another Federal Reserve rate hike. The US economy added 172k jobs in May, bringing the cumulative three-month gain to more than half a million positions.
This decline comes as the Australian economy faces internal challenges, with recent trade balance data showing slowing momentum, while China's Manufacturing PMI—Australia's largest trading partner—stood at 51.8 in June per market data. Compared to other major peers, the Aussie lost its appeal against the Greenback, which benefited from widening yield spreads, especially after the US ISM Manufacturing PMI posted a strong reading of 54 on June 1, 2026.
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Sign InTraders should watch technical support levels near 0.60 as bearish momentum for AUD/USD intensifies. Looking at the economic calendar, markets are awaiting Fed official Kashkari's speech on June 2, 2026, for further clues on the monetary policy path. Additionally, Australian building permits, which contracted by -3.4% in June per market data, will play a role in determining the currency's ability to hold against USD strength.