- AUD/USD reached a multi-year low at around 0.6574 but bounced back and is gaining 0.29%.
- The Summary of Economic Projections (SEP) reported that Fed officials see rates at around 4.4% by the end of 2022.
- The US Department of Labor reported that Jobless Claims rose less than estimated but exceeded the previous reading.
The AUD/USD rebounds off YTD lows reached at around 0.6574 and is back above the 0.6600 psychological figure as the greenback weakens, following an aggressive rate hike by the Fed, which opened the door for further increases. Even though the previously mentioned would support the greenback, the AUD/USD climbs, trading at 0.6642 at the time of writing.
Global equities remain on the back foot, recording hefty losses. Worldwide central banks continue to tighten monetary conditions amidst a period of two-digit inflation in some countries. On Wednesday, the Fed raised rates by 75 bps. According to the Summary of Economic Projections (SEP), Fed officials estimate another 120 bps of rate increases, seeing the Federal funds rate (FFR) at around 4.4% by the year-end.
AUD/USD is recovering as the US dollar falls
On Thursday, the Labor Department showed that claims for unemployment in the US for the last week, which ended on September 17, increased by 213K, less than the 217K estimated, but above the previous reading, downward revised to 208K. The number of people receiving benefits after an initial week of aid decreased by 22K to 1.379 million in the week ended on September 10.
In the meantime, an absent Australian economic docket left traders to keep digesting the RBA’s minutes released earlier. The central bank noted that it was not in a “pre-set path and would be balanced to try and keep the economy on an even keel.” Furthermore, most of RBA’s board members have begun to assess the possibility of raising rates at a slower pace as the cash rate rises.
However, Westpac analysts expect the RBA to hike 50 bps in October, followed by 25 bps in November, December, and February, lifting rates to 3.6%.
What to watch
On Friday, the Australian economic docket will feature the S&P Global Manufacturing, Services and Composite PMIs.
The US calendar will also reveal the S&P Global PMIs alongside Fed Chair Jerome Powell’s speech at around 18:00 GMT.
AUD/USD Key Technical Levels
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 loses traction, retreats below 1.0600

EUR/USD lost its recovery momentum and declined below 1.0600 in the American session on Friday, erasing a portion of its daily gains in the process. Nevertheless, the risk-positive market atmosphere after PCE inflation data helps the pair limit its losses.
GBP/USD turns negative on the day below 1.2200

GBP/USD reversed its direction and slumped below 1.2200 in the American session on Friday after rising above 1.2270 earlier in the day. Position readjustments and profit-taking on the last trading day of the quarter seems to be weighing on Pound Sterling.
Gold reverses direction, drops below $1,860

Following a steady rebound toward $1,880 on Friday, Gold price made a sharp U-turn and turned negative on the day near $1,860. Although the 10-year US T-bond yield is down more than 1%, XAU/USD struggles to find demand on the last day of Q3.
Polkadot Price Forecast: DOT reversal seems inevitable after 92% correction from all-time high

Polkadot price, in nearly two years, has shed 92.91% from its all-time high of $55.09. The massive downswing in DOT has pushed it down to levels that were last seen in October 2020. Hence, the chances of this altcoin forming a bottom and rallying are high.
Earnings beat triggers Nike to spike 9%

Nike (NKE) stock has surged over 9% in Friday’s premarket, climbing above $98 per share, following late Thursday’s fiscal first-quarter earnings release. Nike beat pessimistic earnings expectations by more than 23% and hiked its dividend by 9%.