Aussie Weakens, Market Awaits Jobs Data
The Australian dollar weakened against the US dollar in European trading on Wednesday (July 22nd). AUD/USD traded slightly around the 0.7000 level, lagging behind other major currencies as the market reassessed the surge in oil prices.
Pressure on the AUD emerged after risks to global energy supply increased. The Iran-backed Houthi group announced a maritime embargo against Saudi Arabia in retaliation for the Saudi blockade of ports and airports in Houthi-controlled Yemen.
The situation is further heightened by the disruption of the Bab el-Mandeb Strait, a vital waterway in the southern Red Sea. This waterway plays a significant role in global energy trade, with approximately 7% of the world's energy passing through the region.
Domestically, investors are awaiting Australia's June jobs data, which will be released on Thursday. Markets expect the Australian economy to add only 15,000 new jobs, down significantly from 40.3,000 in May, while the unemployment rate is expected to remain at 4.4%.
Consequently, the AUD/USD market could remain under pressure if oil prices continue to rise and risk sentiment worsens. However, if Australian labor data is stronger than expected, the AUD could receive temporary support. The next focus will be on the Reserve Bank of Australia's policy direction and US PMI data, which could influence the US dollar's movement. (arl)
Source: Newsmaker.id
