- AUD/USD stays in a tight range above 0.6700 despite multiple tailwinds.
- A hawkish guidance from RBA Bullock on interest rates fails to uplift the Australian Dollar (AUD).
- Weak US JOLTS Job Openings data weighs heavily on the US Dollar.
The AUD/USD pair trades in a tight range above the round-level support of 0.6700 in Thursday’s European session. The Aussie asset fails to find bids despite weakness in the US Dollar (USD) and Reserve Bank of Australia (RBA) Governor Michele Bullock’s hawkish guidance on interest rates.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, extends its downside below 101.20. The US Dollar faced selling pressure after the release of weak United States (US) JOLTS Job Openings data for July, which raised red flags to labor market conditions.
Michele Bullock said in his speech at the Anika Foundation in Thursday’s Asian session, "If the economy evolves broadly as anticipated, the board does not expect that it will be in a position to cut rates in the near term.” Her comments strengthened market speculation that the RBA will unlikely cut interest rates this year.
The Aussie asset consolidates as investors look for fresh cues about how much the Federal Reserve (Fed) will cut interest rates in its September meeting.
The Fed is widely anticipated to start reducing interest rates this month as downside risks to the United States (US) labor market have increased and the progress in the disinflation process towards bank’s target of 2% remains intact. For meaningful cues about the likely interest rate cut size, investors await the US Nonfarm Payrolls (NFP) data for August, which will be published on Friday.
In today’s session, investors will focus the US ADP Employment Change and ISM Services PMI for August. Economists estimate that payrolls in the private sector rose by 145K from 122K in July. In the same period, activities in the service sector, which accounts for two-thirds of the economy, are expected to have expanded at a slower pace to 51.1 from the former reading of 51.4.
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 accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.