The Australian Dollar spent Monday trying to talk itself into a recovery, and the tape was not buying it. AUD/USD has ridden a China-and-commodities narrative for months, one that conveniently glossed over how shaky both legs of that trade have become, and Friday’s Nonfarm Payrolls (NFP) print finally forced a reckoning. US employers added 172K jobs against a consensus near 85K, with roughly 93K of upward revisions to prior months and the unemployment rate steady at 4.3%. The Dollar tore to a two-month high and the Aussie slid to its lowest since mid-April, around 0.7050 by the time Asian desks took over. Monday’s attempt to claw back ground stalled near the same level, a rally that looked more like short covering than conviction.
The commodity prop is cracking
The comfortable story has been that firm iron ore and a steadying China would keep a floor under the Aussie regardless of what…
