- AUD/USD gains strong traction for the second straight day and climbs to a nearly two-week high.
- The uncertainty over the Fed’s rate-hike path weighs on the USD and lends support to the major.
- The mixed US NFP report does little to impress the USD bulls or provide any impetus to the pair.
The AUD/USD pair stands stall near a one-and-half-week high, around the 0.6625-0.6630 region through the early North American session on Friday and moves little in reaction to the mixed US monthly employment details.
The US Dollar (USD) did get a minor lift after the headline NFP print showed that the US economy added 339K new jobs in May, smashing consensus estimates by a big margin. Adding to this, the previous month's reading was also revised higher. That said, the uncertainty over the Federal Reserve's (Fed) next policy moves keeps a lid on any further gains for the Greenback and remains supportive of the strong bid tone surrounding the AUD/USD pair for the second successive day.
It is worth recalling that the markets have been pricing in the possibility of another 25 bps lift-off at the next FOMC meeting on June 13-14. A slew of influential Fed officials this week, however, backed the case for skipping an interest rate hike. Apart from this, the risk-on impulse - led by the optimism over the passage of legislation to lift the government's $31.4 trillion debt ceiling and avert an unprecedented American default - undermines the USD and benefits the risk-sensitive Aussie.
The Australian Dollar (AUD) further draws support from hopes of a recovery in the world's second-largest economy, bolstered by a private survey on Thursday that showed China’s manufacturing sector unexpectedly registered modest growth in May. This, along with speculations that the Reserve Bank of Australia (RBA) could tighten its monetary policy further, favours the AUD/USD bulls and suggests that the path of least resistance for spot prices is to the upside.
Technical levels to watch
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD drops below 1.0800 ahead of key US jobs data
EUR/USD is dropping below 1.0800 in the European session on Wednesday. The pair is dragged by a renewed uptick in the US Dollar, as markets trade with caution ahead of a busy EU and US economic docket. US ADP is the key event risk.
GBP/USD battles 1.2600, with eyes on US ADP data
GBP/USD is trading close to 1.2600, snapping a two-day losing streak in European trading on Wednesday. The modest US Dollar decline acts as a tailwind for the pair but the Pound Sterling struggles amid a cautious market mood. US jobs data awaited.
Gold finds buyers near $2,020, awaits US ADP jobs data
Gold is finding a floor near $2,020 early Wednesday, snapping a two-day correction from all-time highs of $2,144 set on Monday. XAU/USD price capitalizes on a broad US Dollar retreat, as Greenback buyers take a breather following this week’s upswing and ahead of the top-tier US ADP Employment Change data.
Bitcoin-based meme coin ORDI price action wobbles after 1,100% rally
The Bitcoin-based BRC-20 meme coin, which had people confused as being an actual valuable token, is now slowly creeping up to that status. ORDI price rise over the past couple of days has been astonishing, and with BTC driving the price and crossing $44,000, ORDI is also gaining rapidly. But not for long.
The Dollar is struggling to trend
For the last three trading sessions, the dollar index has been crossing up and down the 200-day moving average every day. All in all, the flirting with this level has been going on for more than three weeks, during which neither bulls nor bears were able to form a stable trend.