- AUD/USD has dropped to near 0.6680 as the focus shifts to the US labor market and FOMC minutes.
- Caixin Services PMI has sharply dropped to 53.9 from the former release of 57.1.
- Investors are hoping that FOMC minutes could provide confident cues that the Fed would raise interest rates two times by year-end.
AUD/USD has registered a corrective move to near 0.6680 in the Asian session. The Aussie asset has faced selling pressure as investors have turned cautious ahead of the release of the Federal Open Market Committee (FOMC) minutes and the United States labor market data.
S&P500 futures are showing marginal losses as the weekly session has shortened due to the holiday on Tuesday on account of Independence Day. A volatile action is anticipated in US markets on Wednesday as investors would wrap up their positions.
The US Dollar Index (DXY) is comfortable balancing above the crucial resistance of 103.00 as investors are hoping that FOMC minutes could provide confident cues that Federal Reserve (Fed) chair Jerome Powell would raise interest rates two times by year-end.
Contrary to that, the money market is anticipating only one interest rate hike further as US economic outlook is not delivering promising signs.
Apart from the FOMC minutes, investors would keenly focus on the US Automatic Data Processing (ADP) Employment Change data (June). The ADP report is expected to show a decline in the Employment Change to 180K for June vs. the former release of 278K.
Meanwhile, the Australian Dollar has sensed selling pressure due to weak Caixin Services PMI data. The economic data has sharply dropped to 53.9 from the former release of 57.1. It seems that the Chinese economy is struggling to recover despite meaningful measures from the Chinese administration and the People’s Bank of China (PBoC).
It is worth noting that Australia is the leading trading partner of China and a decline in Chinese services could impact the Australian Dollar.
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
AUD/USD maintains its constructive bias above 0.6600
Further weakness in the US Dollar prompted AUD/USD and the rest of the risk-associated space to regain some balance and surpass once again the key barrier at 0.6600 the figure.
EUR/USD finds thin gains on Monday, but technicals weigh heavy ahead of US inflation updates
EUR/USD found slim upside on Monday, climbing from early bids near 1.0770 but bullish momentum remains limited with the pair struggling to break above the 1.0800 level.
Gold loses its bright amid mixed market mood
Gold prices retreated sharply on Monday from near $2,350 even though US Treasury yields declined, undermining appetite for the Greenback. Traders brace for a busy economic docket in the United States. The XAU/USD trades around $2,336, down 1% amid a risk-on impulse.
Ethereum trades horizontally as institutional whales dump heavily on Coinbase
Ethereum sustained its weekend sideways movement on Monday following a quiet market. However, institutional whales have been depositing the largest altcoin to Coinbase as ETH products also recorded $14.4 million in outflows last week.
Dow Jones Industrial Average stumbles on Monday after consumer inflation outlook rises
DJIA kicked off the new trading week softly higher before getting knocked back after the Federal Reserve Bank of New York revealed that consumer inflation expectations for the coming year accelerated to 3.3%.