AUD/USD struggles below 0.6500, upside looks likely, US Durable Goods Orders in focus

The AUD/USD pair is witnessing a mild correction after hitting a high of 0.6495 in the early Tokyo session. Earlier, the asset rebounded firmly after dropping to near 0.6437 as the risk-off profile was heightened. As investors have started shrugging off the negative market sentiment, commodity-linked currencies have displayed a pullback move. Also, lower consensus for the US Durable Goods Orders data has weakened the US dollar index (DXY).

Meanwhile, a mix of news wires on China’s growth projections, and communication between Australian Prime Minister Anthony Albanese and US Vice President Kamala Harris has sidelined the aussie investors.

World Bank has cut growth projections for China considering its longer zero-tolerance approach towards Covid-19 and real estate crisis as reported by Wall Street Journal. Covid-19 restrictions suspended the movement of men, materials, and machines, which resulted in lower production outputs. While, the real estate crunch trimmed demand for base metals, steel, and other building materials dramatically. WSJ further added that developing economies in East Asia would grow faster than China this year for the first time since 1990.

Australian Albanese has congratulated US Harris on the passage of the Inflation Reduction Act. This came after US Harris announced that the economy will work on peace and security in the Indo-Pacific region with Australia.

In today’s session, the US consumer durables data will hog the limelight. The economic data is expected to decline by 1.1% as individuals are postponing their demand for durable goods amid sky-rocketing core price rise index and soaring interest rates. A lower-than-expected reading would shift the DXY into a corrective mode.