AUD/USD trades with mild gains above 0.6650, all eyes on US NFP data

FXStreet
Updated Jun 7, 2024 01:41
Mitrade
coverImg
Source: DepositPhotos

■  AUD/USD posts modest gains around 0.6670 in Friday’s early Asian session. 

■  The softer US employment data this week triggered the Fed rate cut expectation in September.

■  RBA’s Bullock said the central bank won’t hesitate to hike again if inflation remains sticky. 


The AUD/USD pair trades with mild gains near 0.6670 on Friday during the early Asian trading hours. The growing speculation about the US Federal Reserve (Fed) rate cut and softer US economic data weigh on the US Dollar (USD) and create a tailwind for AUD/USD. Later on Friday, the US Nonfarm Payrolls (NFP) data for May will be in the spotlight. 


The softer US economic data this week spurred the Fed rate cut expectation in September. Traders are now pricing in a nearly 68% odds chance of a rate cut for the September meeting, up from 50% at the beginning of the week, according to the CME FedWatch tool. 

The number of Americans claiming jobless benefits for the week ended May 31 rose 8,000 to 229,000 from 221,000 in the previous week, higher than the forecast of 220K, according to the Labour Department on Thursday. Earlier this week, the US Manufacturing PMI came in weaker than the expectation, dropping to 48.7 in May from 49.2 in April.  

On the other hand, the hawkish tone from Reserve Bank of Australia (RBA) Governor Michele Bullock on Wednesday has provided some support to the Australian Dollar (AUD). RBA’s Bullock said the central bank Plan A is to remain "data-driven,"  indicating the RBA will maintain its neutral stance for the time being. However, stickier than expected inflation would prompt the central bank to raise interest rates again. 


AUD/USD


Overview
Today last price 0.6669
Today Daily Change 0.0021
Today Daily Change % 0.32
Today daily open 0.6648
 
Trends
Daily SMA20 0.6645
Daily SMA50 0.6571
Daily SMA100 0.6561
Daily SMA200 0.6539
 
Levels
Previous Daily High 0.6665
Previous Daily Low 0.6626
Previous Weekly High 0.668
Previous Weekly Low 0.6591
Previous Monthly High 0.6714
Previous Monthly Low 0.6465
Daily Fibonacci 38.2% 0.6641
Daily Fibonacci 61.8% 0.665
Daily Pivot Point S1 0.6628
Daily Pivot Point S2 0.6608
Daily Pivot Point S3 0.6589
Daily Pivot Point R1 0.6666
Daily Pivot Point R2 0.6685
Daily Pivot Point R3 0.6705

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

Do you find this article useful?
Related Articles
placeholder
Japanese Yen experiences volatility due to more FX intervention risksThe Japanese Yen (JPY) trims its gains as the US Dollar (USD) strengthens, buoyed by improved Treasury yields. However, the JPY's volatility is anticipated to persist amid speculation of intervention by Japanese authorities following weaker-than-anticipated US Consumer Price Index (CPI) figures.
Author  FXStreet
The Japanese Yen (JPY) trims its gains as the US Dollar (USD) strengthens, buoyed by improved Treasury yields. However, the JPY's volatility is anticipated to persist amid speculation of intervention by Japanese authorities following weaker-than-anticipated US Consumer Price Index (CPI) figures.
placeholder
EUR/USD trims gains and snaps seven-day win streak ahead of Fed policy updateEUR/USD stumbled on Monday after a muddled election outcome in France leaves policy guidance unclear for the Euro bloc.
Author  FXStreet
EUR/USD stumbled on Monday after a muddled election outcome in France leaves policy guidance unclear for the Euro bloc.
placeholder
EUR/USD Price Analysis: Holds position around 1.0850 due to bullish biasEUR/USD halts its seven-day winning streak, trading around 1.0830 during the Asian hours on Monday. The renewed demand for the US Dollar (USD) puts pressure on the EUR/USD pair.
Author  FXStreet
EUR/USD halts its seven-day winning streak, trading around 1.0830 during the Asian hours on Monday. The renewed demand for the US Dollar (USD) puts pressure on the EUR/USD pair.
placeholder
EUR/USD holds position around 1.0800 as softer US data escalate odds of Fed rate cutsEUR/USD continues its winning streak, trading around 1.0790 during the Asian session on Thursday.
Author  FXStreet
EUR/USD continues its winning streak, trading around 1.0790 during the Asian session on Thursday.
placeholder
Japanese yen fragile as USDJPY nears 162; intervention in focusInvesting.com-- The Japanese yen steadied near its weakest levels in 38 years on Thursday, with the currency’s latest decline and low liquidity during a U.S. market holiday sparking fresh speculation over government intervention.
Author  Investing.com
Investing.com-- The Japanese yen steadied near its weakest levels in 38 years on Thursday, with the currency’s latest decline and low liquidity during a U.S. market holiday sparking fresh speculation over government intervention.