AUD/USD rebounds as the US Dollar corrects with US NFP data taking centre stage. US employers are expected to have posted fresh 8.1 million job vacancies in July. The Aussie economy expanded at an expected pace of 1% on an annualized basis. The Aussie asset rebounds as the US Dollar corrects moderately after posting a fresh two-week high. The US Dollar Index , which tracks the Greenback’s value against six major currencies, falls from recent highs of 102.00 to near 101.60.
Market sentiment – whether investors are taking on more risky assets or seeking safe-havens – is also a factor, with risk-on positive for AUD. How do the decisions of the Reserve Bank of Australia impact the Australian Dollar? The Reserve Bank of Australia influences the Australian Dollar by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole.