AUD/USD gains as weak US jobs data strengthens Fed easing outlook

AUD/USD has advanced following disappointing US ADP employment figures that have significantly strengthened the case for Federal Reserve rate cuts. The weaker-than-expected private payrolls data immediately pressured the dollar, allowing the Australian dollar to gain ground despite mixed domestic fundamentals. Markets are now pricing in a higher probability of aggressive Fed easing, which could narrow the interest rate differential between the US and Australia. The pair faces immediate resistance at recent highs, with momentum indicators suggesting further upside potential if US labor market weakness persists. Support has formed at previous resistance levels, indicating a potential trend reversal. Friday's NFP report becomes crucial for confirming this bullish AUD/USD trajectory. A continuation of soft US employment data could propel the pair toward key psychological levels, while any positive surprise might trigger a sharp reversal as Fed cut expectations moderate.