Gold and the Australian Dollar strengthened on Thursday following the release of weaker-than-expected US Nonfarm Payrolls data, which showed the US economy added only 57,000 jobs in June. This softer employment figure dampened expectations for an imminent Federal Reserve rate hike, causing the US Dollar and Treasury yields to fall, according to FX Street.
The gold price surged more than 2%, with the XAU/USD pair climbing to $4,111 after bouncing off daily lows near $4,032. Meanwhile, the Australian Dollar rose against the US Dollar as traders reassessed the Fed’s tightening path in light of the subdued payroll numbers. The US Dollar Index also traded under pressure amid these developments.
For Japanese investors, these movements highlight the ongoing sensitivity of global markets to US economic data and Fed policy signals, which continue to influence FX and commodity prices relevant to Japan’s export-driven economy.