AUD/USD sharply climbs despite solid US NFP data

The United States just released a fantastic jobs report, which improved market mood as shaky regional bank stocks rose following the recent instability in the US banking sector. This is why the AUD/USD is rising significantly. After falling to a low of 0.6607, the AUD/USD is currently trading at 0.6730, up 0.68 percent.

Following the US Fed’s 25 basis point rate hike on Wednesday, the most recent employment data in the US, the Nonfarm Payrolls, revealed that hiring in April outperformed expectations as the economy added 253K more people than expected, or 180K.

Following the Fed’s announcement, market participants started pricing in rate reductions right away. The short-term interest rate futures are falling as traders reduce their expectations of a rate cut, indicating that today’s market data has them in a panic.

According to the US jobs data, average hourly earnings increased by 0.5% MoM, beating estimates by 0.3%, while the unemployment rate decreased slightly from 3.5% in March to 3.4%. Investors anticipate the Fed to maintain rates at their current levels for the June meeting after the data is in the rearview mirror.

The US Dollar Index trims some of its weekly losses and gains 0.02%, at 101.473. The US 10-year Treasury bond yield jumped eight bps, up at 3.439%, offering a cushion to AUD/USD sellers.