AUD/USD drops to fresh daily low below 0.6450 after US data
|- AUD/USD extended its daily slide in the American session.
- ADP reported a bigger than expected increase in private sector employment in September.
- Wall Street's main indexes remain on track to open deep in negative territory.
AUD/USD came under renewed bearish pressure and dropped to a fresh daily low below 0.6440 before recovering modestly in the early trading hours of the American session on Wednesday. As of writing, the pair was down 0.75% on the day at 0.6452.
Dollar capitalizes on upbeat ADP data
The data published by Automatic Data Processing (ADP) revealed that private sector employment in the US rose by 208,000 in September, compared to the market expectation of 200,000. Additionally, August's print got revised higher to 185,000 from 132,000. On the back of upbeat employment data, the US Dollar Index extended its rally and was last seen rising 0.75% on the day at 111.05.
Meanwhile, safe-haven flows continue to dominate the financial markets and put additional weight on AUD/USD's shoulders in the second half of the day.
Wall Street's main indexes remain on track to open deep in negative territory with US stock index futures losing between 0.95 and 1.1% on the day, suggesting that safe-haven flows are likely to continue to dominate the market action.
Later in the session, the ISM will release the Services PMI survey for September. Atlanta Fed President Raphael Bostic is scheduled to speak at a virtual conference titled "Staying Resolute in the Battle Against Inflation."
Technical levels to watch for
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