Australian Dollar hangs near two-week low vs. firmer USD ahead of key US macro releases
- AUD/USD struggles to capitalize on the previous day’s bounce amid a broadly firmer USD.
- Receding Fed rate cut bets and a weaker risk tone underpin the safe-haven Greenback.
- Traders now look to the Advance US Q4 GDP and the key US PCE data for a fresh impetus.
The AUD/USD pair meets with a fresh supply during the Asian session on Friday and remains well within striking distance of a nearly two-week low, touched the previous day. Spot prices currently trade around the 0.7035 area as traders look to the key US macro releases before placing fresh directional bets.
The delayed US GDP report is expected to show that growth in the world's largest economy slowed to 3.0% annualized pace during the October-December period, compared to the 4.4% rise recorded in the previous quarter. The key focus, however, will be on the US Personal Consumption Expenditure (PCE) Price Index – the Federal Reserve's (Fed) preferred inflation gauge – amid signs of easing inflationary pressures. The crucial data will play a key role in influencing market expectations about the Fed's rate-cut path, which, in turn, will drive the US Dollar (USD) demand and provide a fresh impetus to the AUD/USD pair.
Apart from this, the flash US PMIs will be looked upon to grab short-term trading opportunities heading into the weekend. In the meantime, the preliminary reading of Australia's S&P Global Manufacturing PMI came in at 51.5 in February, down from 52.3 prior. This, along with a slight deterioration in the global risk sentiment, acts as a headwind for the Australian Dollar (AUD) amid a bullish USD, bolstered by fading Fed rate cut bets. In fact, the January Nonfarm Payrolls (NFP) report, along with less dovish FOMC Minutes and the recent comments from Fed officials, did not support the notion of three rate cuts in 2026.
Furthermore, reviving safe-haven demand assists the safe-haven Greenback to hold steady just below a four-week high, touched on Thursday, and acts as a headwind for the AUD/USD pair. However, the US central bank is still expected to lower borrowing costs this year, which marks a significant divergence in comparison to the Reserve Bank of Australia's (RBA) hawkish outlook and could support spot prices. Hence, it will be prudent to wait for strong follow-through selling before positioning for the pair's recent pullback from the vicinity of mid-0.7100s, or the highest level since February 2023, touched last Thursday.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.09% | 0.11% | 0.08% | 0.04% | 0.38% | 0.42% | 0.06% | |
| EUR | -0.09% | 0.01% | -0.02% | -0.05% | 0.29% | 0.33% | -0.03% | |
| GBP | -0.11% | -0.01% | -0.02% | -0.07% | 0.28% | 0.31% | -0.05% | |
| JPY | -0.08% | 0.02% | 0.02% | -0.04% | 0.29% | 0.32% | -0.03% | |
| CAD | -0.04% | 0.05% | 0.07% | 0.04% | 0.33% | 0.37% | 0.02% | |
| AUD | -0.38% | -0.29% | -0.28% | -0.29% | -0.33% | 0.03% | -0.32% | |
| NZD | -0.42% | -0.33% | -0.31% | -0.32% | -0.37% | -0.03% | -0.36% | |
| CHF | -0.06% | 0.03% | 0.05% | 0.03% | -0.02% | 0.32% | 0.36% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
