AUD/USD is expected to rise over 0.6880 amid growing Fed hawkish wagers

At the outset, the AUD/USD pair is aiming to surpass the crucial resistance level of 0.6850, as Friday's fatigue in the US dollar index (DXY) is anticipated to be followed by a lackluster performance. The asset is striving for more gains, and greater upside will be deserved upon surpassing the significant barrier of 0.6880.

Despite the optimistic US Nonfarm Payrolls (NFP) statistics, dollar bulls are predicted to fare poorly. The US economy added 372k jobs in June, which was much more than the consensus forecast of 268k but lower than the previous report. The Unemployment Rate stayed unchanged from the previous reading and estimates, at 3.6%. Undoubtedly, the US economy's outperformance on the labor market front will enable the Federal Reserve (Fed) to announce significant rate rises with somewhat less reluctance.

Friday's decrease in Average Hourly Earnings (AHE) will nonetheless have a negative impact on the US economy. Annually, the economic statistics came in at 5,1 percent, above expectations of 5 percent but falling short of the previous announcement of 5,3 percent. When the inflation rate is out of control, US families do not benefit from decreased AHE. In times of escalating pricing pressures, reduced AHEs will have a severe impact on their income. This may result in a decrease in total demand.

On the Australian front, investors are concentrating on Thursday's employment data announcement. The Employment Change is anticipated to be significantly lower at 25k than the previous publication of 60,6K. However, the unemployment rate will decline to 3.8 percent from the previously reported 3.9 percent.