AUD Trims Gains vs USD After Strong US Jobs Data

The Australian dollar trimmed its early gains against the US dollar on Friday, retreating from an intraday high near 0.6916 to trade around 0.6900, as stronger-than-expected US employment data bolstered the greenback and heightened expectations for a prolonged period of steady Federal Reserve interest rates.

The US Bureau of Labor Statistics reported that the economy added 178,000 nonfarm payroll jobs in March, surpassing forecasts of 60,000 and signaling robust labor market conditions despite revisions to prior months. The unemployment rate edged lower to 4.3 percent from 4.4 percent. Wage growth provided a mixed signal, with average hourly earnings rising 0.2 percent month-over-month, below the anticipated 0.3 percent and easing from February's 0.4 percent increase. Annually, earnings growth slowed to 3.5 percent, missing expectations of 3.7 percent.

Traders reacted swiftly to the report, scaling back bets on imminent Fed rate cuts and pricing in a higher likelihood of rates remaining unchanged through much of 2026, according to tools tracking market expectations. This shift strengthened the US dollar index, which consolidated above 100, while US Treasury yields rose, widening...