The pair benefits from broad-based US Dollar (USD) weakness as investors react to softer-than-expected US economic data and improved risk sentiment driven by the latest geopolitical developments. The US Dollar remains under pressure, with the US Dollar Index (DXY) down 0.16% on the day, trading around 99.70 at the time of press. Although the services sector continues to signal expansion, the Employment Index fell to 47.4, highlighting softer hiring conditions. The Australian Dollar's upside may remain capped as markets have significantly scaled back expectations of another Reserve Bank of Australia (RBA) rate hike. According to the ASX RBA Rate Tracker, the chance of a rate increase has fallen from 43% on July 24 to just 3% currently.