AUD/USD loses ground near 0.6550 ahead of the Australian GDP data

The AUD/USD pair extends its downside around the mid-0.6500s during the early Asian session on Wednesday. The downward momentum is driven by the renewed US Dollar (USD) demand. Investors await the Australian Gross Domestic Products for the third quarter (Q3) for fresh impetus, which is expected to remain steady at 0.4% YoY. AUD/USD currently trades around 0.6551, down 0.01% on the day.

The US Dollar gains ground above 104.00, its highest daily close in two weeks, despite lower US Treasury yields and mixed US data. The US job openings data, as measured by the Job Openings and Labour Turnover Survey (JOLTS) dropped by 617,000 to 8.733M in October. This figure could offer some hints about November’s ADP job report on Wednesday, with an expected rise of 130K in private sector workers.

Additionally, the US ISM Services PMI came in better than expected, growing to 52.7 from 51.8 in the previous reading. The figure registered the 11th consecutive month of expansion in the services sector and suggested the economy is still some way from recession.

On Tuesday, the Reserve Bank of Australia (RBA) board members decided to keep the rate steady at 4.35% at its December monetary policy meeting. Following the meeting, the Australian Dollar (AUD) has edged lower against its rivals. The RBA’s Governor Michele Bullock said whether additional monetary policy tightening is necessary to ensure that inflation returns to target would be determined by the data and the developing risk assessment.

Looking ahead, market players will closely monitor the Australian growth number for Q3. The attention will shift to the US ADP private employment and Unit Labor Cost data, is due on Wednesday. These figures could give clear direction to the AUD/USD pair.