AUD/USD rose sharply on weak US ISM Services data, which fell to the lowest level since 2020. The US economy added about , jobs as wage growth slowed, helping the Federal Reserve’s work to curb inflation. , Federal Reserve policymakers reiterated the need to contain inflation and emphasized that they would stay the course. The Australian dollar (AUD) rose against the US dollar (USD) after key economic data from the United States (US) was good but failed to support the greenback. In addition, the service PMI survey fell into declining territory, fueling speculation of a US recession. At the time of writing, AUD/USD is trading at 0.6866, about 0 pips above the 200-day exponential moving average (EMA). UNITED STATES MIXED ECONOMIC DATA INITIAL DATA AUD/USD December labor market data in the US gave a mixed report. Although the economy added 223,000 jobs instead of about 200,000, fears of persistent wage inflation have eased. Average hourly earnings rose 0.3% but fell to .6% on the year, compared to the 5.0% consensus. Federal Reserve policymakers would welcome the slowdown, as wage pressures are one of the factors keeping inflation above its 2 percent target. AUD/USD rose on the release, moving to 0.6800. However, weaker-than-expected ISM Services data and declining US factory orders added to AUD/USD’s gains, taking it to a two-day high of 0.68 9. Friday’s data showed the , ISM Services PMI unexpectedly slipped to 9.6 from an estimate of 55, the lowest reading since May 2020 and 56.5 in November. PMI readings below the 50 line signal contraction. In addition, Fed speakers continued to hit the news wires. Earlier, Atlanta Federal Reserve President Raphael Bostic said the December jobs report would not change his views on the economy and stressed the need to „stay the course.” Later, Federal Reserve Governor Lisa D. Cooks said that despite recent reports, inflation was „too high” and „a serious concern.” Australian data for next week includes building permits, monthly consumer price (CPI) release, retail sales and trade balance. On the US front, its calendar includes the Consumer Price Index (CPI), unemployment benefits and University of Michigan (UoM) consumer sentiment.