AUD/USD treads waters to reach 0.6450, Greenback trims intraday gains
|- AUD/USD attempts to approach 0.6450 on the back of the Greenback’s retreat.
- The pullback in US bond yields limits the gains of the US Dollar (USD).
- Australia's private sector returned to growth in September; providing minor support to the Aussie pair.
AUD/USD snaps a two-day losing streak, trading higher near 0.6440 during the European session on Friday. The pair is receiving upward support as the US Dollar (USD) retraces a portion of its intraday gains.
The pullback in US Treasury yields might have limited the upside potential of the Greenback. The yield on the 10-year US bond stands at 4.46%. The US Dollar Index (DXY), which measures the performance of the Greenback against six other major currencies, is trading at around 105.60 at the time of this report.
Market participants are likely awaiting economic data releases, including the preliminary United States (US) S&P Global PMIs for September. These datasets may provide valuable insights into the economic conditions and assist traders in identifying potential trading opportunities around the AUD/USD pair.
During the Wednesday meeting, the Federal Reserve (Fed) opted to maintain interest rates within the 5.25-5.50% range. Fed Chairman Jerome Powell, in a subsequent press conference, reiterated the Fed's commitment to achieving a 2% inflation target. Powell also mentioned that the Fed is prepared to raise rates if deemed necessary. The Fed's hawkish stance could exert pressure on the Aussie pair.
On the other side, a survey has indicated that Australia's private sector returned to growth in September after two consecutive months of contraction, providing some support to the AUD/USD pair. The Judo Bank Flash Australia Composite PMI saw an improvement, rising from 48.0 in August to 50.2 in the reported month.
Additionally, the Australian Services PMI reached a four-month high, registering 50.5 for September, up from 47.8 in August. However, the Manufacturing PMI remained in contraction territory, declining to 48.2 from 49.6 in the previous month. This contraction in the manufacturing sector has tempered bullish sentiment around the Australian Dollar (AUD), preventing aggressive bullish bets on the currency.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.