AUD/USD hits four-week highs above 0.7400 as dollar’s slide continues

AUD/USD gains for the third consecutive day, supported by a weaker dollar.
Greenback hits weekly lows across the board ahead of the Nonfarm payroll report.

The AUD/USD rose further and climbed to 0.7409, reaching the highest level since August 5. Is it hovering around 0.7400, on its way to the third daily gain in a row.

Dollar loses, AUD/USD gains

The greenback, measured by the DXY, is falling 0.25%, trading at 92.25, the lowest in almost a month. Higher equity prices and steady US bond yields weighed on the dollar. Economic data from the US failed to lift the dollar. Jobless claims fell more than expected to the lowest since March 2020 while Factory Orders rose in July by 0.4% above the 0.3% of market consensus.

Market participants await the NFP to be released on Friday. Consensus is for an increase in payroll by 750K and the unemployment rate to drop to 5.2%. The numbers are expected to trigger volatility.

The aussie outperformed on Asian hours but then lost momentum against main of its rivals. AUD/NZD failed to hold onto gains and dropped back to 1.0400. In Australia, service sector data is due on Friday.