AUD/USD steadies around 0.7500 ahead of US NFP and Caixin Manufacturing PMI
- AUD/USD is hovering around 0.7500 as investors await the next batch of US data.
- Caixin manufacturing PMI is likely to keep the aussie bulls on the sidelines.
- Aussie has been a top performer amid rising commodity prices.
The AUD/USD pair is oscillating in a range of 0.7456-0.7537 the whole week as investors are waiting for the release of the US Nonfarm Payrolls and Caixin Manufacturing Purchase Managers Index (PMI) data.
A preliminary estimate for the Caixin China Manufacturing PMI is 49.7 lower than the earlier print of 50.4. Australia, being a major exporter to China possesses a positive relationship with the above-mentioned data. The aussie dollar has remained a frontline performer in the Fx domain after Russia’s invasion of Ukraine. Rising prices of commodities have underpinned the antipodean against major currencies. Even a ceasefire between Russia and Ukraine will continue to push the push aussie higher as Europe’s aim to attain independence from Russian oil will shift its dependency for energy on the commodity-exporting currency.
The US dollar index (DXY) has advanced near 98.40 on downbeat market sentiment as global equities lose shine on fading optimism over the Russia-Ukraine peace talks. The DXY has sensed a sheer responsive buying near 97.70 after being a value bet for the market participants. Thursday’s data batch has brought some optimism for the greenback despite a slightly lower Core Personal Consumption Expenditure (PCE) inflation at 5.4% than the estimate of 5.5%.
A power-pack action is expected on Friday as the US docket will report Nonfarm Payrolls (NFP), which is likely to land at 490k, much lower than the previous figure of 678k. This will have a significant impact on the likely decision on the interest rates from the Federal Reserve (Fed).
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
