• AUD/USD rebounds as the US Dollar corrects with US NFP data taking centre stage.
• US employers are expected to have posted fresh 8.1 million job vacancies in July.
• The Aussie economy expanded at an expected pace of 1% on an annualized basis.

The AUD/USD pair bounces back and recovers its intraday losses after posting a fresh two-week low slightly below the crucial support of 0.6700 in Wednesday’s European session. The Aussie asset rebounds as the US Dollar (USD) corrects moderately after posting a fresh two-week high. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, falls from recent highs of 102.00 to near 101.60.

Market sentiment remains risk-averse as investors are cautious ahead of the United States (US) Nonfarm Payrolls (NFP) data for August, which will be published on Friday. S&P 500 futures extend its Tuesday’s downside further, exhibiting a decline in investors’ risk-appetite.

Investors keenly await the US labor market data as it will shape the Federal Reserve’s (Fed) interest rate cut path for the September meeting. The significance of the labor market has increased as the commentary from Fed Chair Jerome Powell at the Jackson Hole (JH) Symposium signalled that the central bank is focused on preventing job losses, given that price pressures are on track to return sustainably to bank’s target of 2%.

Before that, the US Dollar will be guided by the JOLTS Job Openings data for July, which will be published at 14:00 GMT. Economists expect that US employers posted 8.1 million fresh job vacancies, marginally lower from 8.184 million in June.