The Australian Dollar (AUD) trades on the front foot against the US Dollar (USD) on Thursday as a weaker-than-expected US Nonfarm Payrolls (NFP) report pushed back expectations of an imminent Federal Reserve (Fed) interest rate hike.

The AUD/USD pair climbed near the 0.6930 area on Thursday as the US Dollar (USD) came under pressure following softer-than-expected United States (US) labor market data.

NZD/USD rises 0.59% on Thursday to trade around 0.5705 at the time of writing, supported by a sharp decline in the US Dollar (USD) following the release of a significantly weaker-than-expected US employment report.

The Pound Sterling registers solid gains versus the US Dollar on Thursday after the latest US employment report missed estimates, reducing the chances of a Federal Reserve rate hike. The GBP/USD trades at 1.3359, down 0.64%.

USD/JPY falls 0.92% on Thursday and trades around 161.05 at the time of writing after a much weaker-than-expected US employment report weighs on the US Dollar (USD).

The Euro (EUR) gains against the US Dollar (USD) on Thursday after weaker-than-expected US Nonfarm Payrolls (NFP) data reduced expectations of an imminent Federal Reserve (Fed) rate hike.

Geoff Yu reports that the RBNZ will keep its Monetary Policy Committee at six members ahead of the November election, after a split 3-3 vote in May where external members backed a hike.

USD/CAD falls to 1.4180 on Thursday, down 0.26% on the day after dropping to 1.4150, its lowest level in more than a week, following a much weaker-than-expected US employment report.

USD/CHF weakens sharply on Thursday as the US Dollar (USD) comes under broad selling pressure following a weaker-than-expected US Nonfarm Payrolls (NFP) report. At the time of writing, the pair is trading around 0.8029, its lowest level since June 18, down nearly 0.80% on the day.

AUD/JPY declines by 0.61% on Thursday, trading around 111.40 at the time of writing.

Dev Ashish at Societe Generale notes that MXN price action was relatively muted after the United States-Mexico-Canada Agreement (USMCA) extension decision, indicating investors largely expected the outcome.

GBP/JPY trades under pressure on Thursday as the Japanese Yen (JPY) strengthens across the board amid speculation that Japanese authorities may have intervened in the foreign exchange market after the Yen fell to a 40-year low against the US Dollar (USD) earlier this week.

The Euro (EUR) accelerated its decline against a strong Japanese Yen (JPY), which has rallied across the board on Thursday, without any clear reason to explain the move.

BNY’s Geoff Yu notes that iFlow data show clients turning underweight Japanese Yen (JPY) for the first time since Q4 2024, as USD/JPY’s climb and intervention fears had kept hedge ratios low.

NZD/USD trades higher around 0.5680 on Thursday at the time of writing, up 0.16% on the day, as investors reduce their exposure to the US Dollar (USD) ahead of the release of the US Nonfarm Payrolls (NFP) report.

The Euro (EUR) trades higher on Thursday against the US Dollar (USD) as traders trim USD longs ahead of the US Nonfarm Payrolls report, due later on the day.

The British Pound (GBP) trades 0.5% higher to near 1.3340 against the US Dollar (USD) during the European trading session on Thursday.

EUR/GBP trades around 0.8550 on Thursday, down 0.21% on the day, as the Euro (EUR) remains under pressure against the British Pound (GBP) after another batch of data reinforced expectations of a more cautious European Central Bank (ECB).

The Japanese Yen (JPY) staged a sharp rebound against the US Dollar (USD) on Friday, raising speculation about potential action by the Japanese Ministry of Finance (MoF).

Societe Generale highlights that state-controlled banks in India have been actively selling Dollars for a second day after USD/INR briefly moved above its 50-day moving average.

Volkmar Baur at Commerzbank highlights solid Japanese activity data, with the manufacturing PMI at 54.8 and the Tankan business conditions index at its highest since 2003.

Societe Generale strategists highlight that EUR/GBP has completed a Head and Shoulders pattern and broken below its neckline around 0.8610, now seen as initial resistance.

Eurozone Unemployment Rate came in at 6.2%, below expectations (6.3%) in May

USD/CAD has lost its recent gains from the previous day, trading around 1.4190 during the European hours on Thursday. Traders adopt a cautious stance ahead of the highly anticipated June Nonfarm Payrolls (NFP) report.

Chris Turner at ING highlights softer Eurozone inflation and questions over a September ECB hike, with 15bp still priced but subsidies expiry possibly lifting prices later.

The Australian Dollar (AUD) remains practically flat against the US Dollar (USD) on Thursday, consolidating losses after having depreciated nearly 4% in June. The AUD/USD pair is trading within a broadly 65-pip range, with downside attempts contained at 0.6865 and bulls limited below 0.6930 so far.

The EUR/USD pair builds on its intraday ascent and reclaims the 1.1400 mark during the early part of the European session on Thursday, reversing a major part of the overnight losses to the weekly low.

Here is what you need to know on Thursday, July 2:

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The Euro (EUR) is down almost 0.5% to near 184.00 against the Japanese Yen (JPY) during the European trading session on Thursday. The EUR/JPY pair slumps as the Japanese Yen (JPY) delivers a sudden strong upside move, which appears to be the outcome of Japan’s intervention.