AUD/USD Crushed Ahead of Jobs Report as US Dollar, Yields Surge

Near-term bias: bearish AUD/USD, but vulnerable to a sharp data-driven rebound. The dominant force is the US rates repricing: stronger US activity and price signals have lifted Treasury yields and supported the dollar. If higher short-term yields persist, the yield advantage shifts toward USD and can keep pressure on AUD/USD regardless of Australian data. The accompanying risk-off tone is an additional headwind for the Australian dollar.

Australian employment still matters chiefly for expectations beyond the next RBA meeting. A stronger report could reinforce the prospect of further tightening and support AUD; rising unemployment toward the range the RBA governor has identified as potentially easing inflation pressure could instead strengthen expectations that hikes are nearing an end. That local support may be limited if US yields continue to climb.

What to watch:

the jobs report’s employment and unemployment details, follow-through in US yields and the dollar, and whether the broader risk-off move persists. The 0.70 level is a notable psychological threshold cited in the source, but a test or break would not by itself confirm a sustained trend.