- 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
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 pressures as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.