- AUD/USD attract some buyers and snaps a nine-day losing streak to its lowest level since early May.
- A modest recovery in the equity markets undermines the USD and lends some support to spot prices.
- China’s economic woes might cap gains as traders now await the release of the US PCE Price Index.
The AUD/USD pair ticks higher during the Asian session on Friday and moves further away from its lowest level since early May, around the 0.6515 region touched the previous day. Spot prices currently trade just below mid-0.6500s and for now, seem to have snapped a nine-day losing streak amid subdued US Dollar (USD) price action.
The USD Index (DXY), which tracks the Greenback against a basket of currencies, remains confined in a familiar range held over the past week or so as traders seek more clarity about the Federal Reserve's (Fed) rate-cut path before placing directional bets. Hence, the focus will remain glued to the release of the US Personal Consumption Expenditures (PCE) Price Index, due later today, which could influence the Fed's future policy decisions and drive the USD demand.
Meanwhile, the markets reacted little to Thursday's upbeat US macro data, showing that the world's largest economy expanded by a 2.8% annualized rate during the April-June period as compared to the 2% rise anticipated. Additional details of the report revealed that the core PCE Price Index – the Fed's preferred inflation gauge – decelerated from 3.7% to 2.9% during the reported period. Furthermore, the US Initial Jobless Claims dropped to 235K last week vs. 238K expected.
The data suggested that the US economy still holding up well, which, in turn, should act as a tailwind for the Greenback. Apart from this, persistent worries about a slowdown in China – the world's second-largest economy – might hold back traders from placing aggressive bullish bets around the China-proxy Australian Dollar (AUD). This makes it prudent to wait for strong follow-through selling before confirming that the AUD/USD pair has bottomed out in the near term.
Economic Indicator
Personal Consumption Expenditures - Price Index (YoY)
The Personal Consumption Expenditures (PCE), released by the US Bureau of Economic Analysis on a monthly basis, measures the changes in the prices of goods and services purchased by consumers in the United States (US). The YoY reading compares prices in the reference month to a year earlier. Price changes may cause consumers to switch from buying one good to another and the PCE Deflator can account for such substitutions. This makes it the preferred measure of inflation for the Federal Reserve. Generally, a high reading is bullish for the US Dollar (USD), while a low reading is bearish.
Read more.Next release: Fri Jul 26, 2024 12:30
Frequency: Monthly
Consensus: 2.5%
Previous: 2.6%
Source: US Bureau of Economic Analysis
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 extends rally to beyond 1.1100 on broad USD weakness
EUR/USD gathered bullish momentum and touched a fresh multi-month high above 1.1100 in the European session on Thursday. The pair benefits from the intense selling pressure surrounding the US Dollar after US President Trump unveiled aggressive tariffs on the "Liberation Day." Markets await mid-tier US data releases.

GBP/USD surges to multi-month tops near 1.3200 ahead of US data
GBP/USD is extending its upbeat momentum toward 1.3200 in European trading on Thursday as the US Dollar slumps to a fresh YTD low. Worries about a tariff-driven US economic slowdown lift Fed rate cut bets and weigh on the Greenback. The focus now remains on the US data for further impetus.

Gold retreats toward $3,100 from all-time peak
Gold price extends its steady intraday pullback from the all-time peak touched this Thursday, though it manages to hold above the $3,100 mark in the European session. Bullish traders opt to take some profits off the table and lighten their bets around the commodity amid slightly overbought conditions.

SOL is the winner as Solana chain turns into battleground for meme coin launchpad and DEX
Solana (SOL) gains nearly 2% in the last 24 hours and trades at 118.28 at the time of writing on Thursday. A Decentralized Exchange (DEX) and a meme coin launchpad built on the Solana blockchain have waged a war for users and compete for the trade volume on the chain.

Trump’s “Liberation Day” tariffs on the way
United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs.

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.