AUD/USD approaches 0.6600 as the US Dollar falls ahead of Fed Powell, Job Openings data

~~The Aussie Dollar reverses previous losses and hits fresh~~ YTD ~~highs near 0.6600.~~
~~Upbeat manufacturing data from China is buoying the Aussie on Tuesday.~~
~~Later today, Fed's Powell, US manufacturing and jobs data are likely to set the US Dollar's direction.~~

Guillermo Alcala FXStreet

The Australian Dollar keeps marching higher against a depressed US Dollar. The pair has reversed earlier losses and is trading higher for the second consecutive day, reaching fresh year-to-date highs at 0.6590.

The US Dollar extends its downtrend on Tuesday, crushed by a mix of US debt fears, hopes of Fed cuts in the second half of the year and the ongoing uncertainty about trade as the July 9 deadline approaches and major trade deals remain elusive.

China's upbeat manufacturing activity is supporting the AUD

Data from China released earlier today revealed that manufacturing activity returned to expansion levels, following a sharper-than-expected improvement in June. These figures have offset the soft NBS PMI reading seen on Monday and provided a fresh boost to the China-proxy AUD.

In the US, Trump’s sweeping tax bill, which is expected to add $3.3 trillion to the US debt pile, is going through a lengthy voting process in the Senate, with investors´ concerns about a debt crisis in the US rising.

This, coupled with increasing bets that the Fed will accelerate its monetary easing cycle in the coming months, and the looming threat of higher tariffs, amid the lack of significant progress on deals with trading partners, id creating a perfect storm for the USD.

Later today, the Fed Chairman, Jerome Powell´s comments at a central bankers’ summit in Sintra, Portugal, might provide further insight on the bank's rate-cutting calendar. Somewhat later, US manufacturing and employment figures will be analysed to confirm Powell’s views.

Economic Indicator

Caixin Manufacturing PMI

The Caixin Manufacturing Purchasing Managers Index (PMI), released on a monthly basis by Caixin Insight Group and S&P Global, is a leading indicator gauging business activity in China’s manufacturing sector. The data is derived from surveys of senior executives at both private-sector and state-owned companies. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation.The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the Renminbi (CNY). Meanwhile, a reading below 50 signals that activity among goods producers is generally declining, which is seen as bearish for CNY.

Economic Indicator

Fed's Chair Powell speech

Jerome H. Powell took office as a member of the Board of Governors of the Federal Reserve System on May 25, 2012, to fill an unexpired term. On November 2, 2017, President Donald Trump nominated Powell to serve as the next Chairman of the Federal Reserve. Powell assumed office as Chair on February 5, 2018.

Economic Indicator

JOLTS Job Openings

JOLTS Job Openings is a survey done by the US Bureau of Labor Statistics to help measure job vacancies. It collects data from employers including retailers, manufacturers and different offices each month.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold weakens to three-month lows near $4,300

Gold faces increasing selling interest and approaches the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.