AUD/USD attempts recovery from 0.6640 as US Dollar faces pressures, US Employment eyed
- AUD/USD has found some support near 0.6640 amid mild pressure in the USD Index.
- FOMC members favored a skip in the policy-tightening regime to buy some time to assess the economy’s progress.
- The Australian Dollar failed to find strength despite better-than-anticipated monthly Trade Balance data.
The AUD/USD pair has found some support near 0.6640 in the late Asian session. The Aussie asset has sensed some buying interest after mild pressure in the US Dollar Index (DXY). The USD Index has witnessed a minor sell-off after printing a fresh four-day high at 103.40.
Mild losses posted by S&P500 on Wednesday have extended sharply overnight as fears of a recession in the United States have elevated considering the fact that the Federal Reserve (Fed) will raise interest rates further. In June monetary policy meeting, Fed policymakers were mixed about skipping the rate-tightening spell.
Federal Open Market Committee (FOMC) members judged it appropriate or acceptable to maintain the target range for the federal funds rate at 5 to 5-1/4 percent at this meeting. And, favored a skip in the policy-tightening regime to buy some time to assess the economy’s progress toward achieving price stability and full employment levels.
On Thursday, investors will focus on the Automatic Data Processing (ADP) Employment Change report. As per the estimates, the US ADP report will show fresh additions of 228K in June vs. the former addition of 278K.
Meanwhile, the Australian Dollar failed to find strength despite better-than-anticipated monthly Trade Balance data. Headline Goods/Services Trade Balance came in at 11,791M MoM for May, compared with the expectations of 10,500M and 11,158M prior.
This week, the Reserve Bank of Australia (RBA) kept the interest rate decision unchanged at 4.10%. RBA Governor Philip Lowe kept monetary policy steady as the monthly Consumer Price Index (CPI) softened sharply to 5.6% vs. the prior release of 6.8%.