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09 Jul 2023

Payrolls weigh on the USD

• US payrolls. Non-farm payrolls came in lower than expected. But other detail in the report shows that the US labour market is still tight.• Softer USD. The USD weakened. US CPI in focus this week. Base-effects point to a further step down in inflation. This could exert more pressure on the USD.• AUD rebound. AUD has bounced back. In addition to the US CPI, RBA Governor Lowe speaks on Wednesday. We think the AUD may recover more ground. A tumultuous week for markets was brought to a close by the release of the US labour market report on Friday....

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