• The Australian Dollar recovers daily losses after the release of the moderate jobs data.
• The commodity-linked AUD faced challenges as reduced demand and a surplus of commodities put pressure on market prices.
• The US Dollar experienced losses following a moderate Consumer Price Index data released on Wednesday.

The Australian Dollar (AUD) recovers its intraday losses following the moderate employment data release on Thursday. However, the Aussie Dollar faced challenges against the US Dollar (USD) due to declining copper and iron ore prices. The drop is exacerbated by worsening credit data from China, which, combined with reduced demand and a surplus of commodities, has put further pressure on the markets. However,  

The AUD/USD pair is under downward pressure as investors evaluate the Reserve Bank of Australia's (RBA) monetary policy stance. Despite elevated wage growth in the second quarter, which has kept the RBA's outlook hawkish, RBA Governor Michele Bullock has dismissed any possibility of rate cuts in the next six months. Bullock stressed that the Australian central bank remains vigilant about inflation risks and is prepared to increase rates further if needed.

The US Dollar faces challenges after Wednesday's Consumer Price Index (CPI) data showed a moderate increase in July's annual US inflation rate. Investors are likely debating how much the Federal Reserve (Fed) will cut rates in September. While traders are leaning towards a more modest 25 basis point reduction, with a 60% probability, a 50 basis point cut remains a possibility. According to CME FedWatch, there is a 36% chance of the larger cut occurring in September.