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AUD/USD today is under renewed selling pressure since Thursday and is holding off the selling tone throughout the first half of the European session. Information about today's forex news is quoted directly from the fxstreet.com site.
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The currency pair is currently placed in the 0.6725-20 region and remains well within striking distance of its lowest level since early January touched the previous day. The US dollar regained some positive traction and reversed a part of the previous day’s sharp slide from multi-week tops. This, in turn, was seen as a key factor that could weigh on the AUD/USD pair on Thursday. Growing acceptance that the Fed will remain hawkish for longer continued pushing the US Treasury yields higher. Apart from this, the cautious market mood amid rising recession risks kept the greenback in favour of a safe-haven and contributed to driving flows away from the risk-averse Aussie. Markets seem convinced that the US central bank will continue to tighten its monetary policy in the wake of high inflation. Moreover, incoming US macro data pointed to a robust economy despite rising borrowing costs and allowed the Fed to keep interest rates higher. Also, Minneapolis Fed President Neel Kashkari opened the door for a 50 basis point hike at the next meeting in May and lifted the US 10-year yield to its highest since November. Meanwhile, the overnight optimism led by upbeat Chinese PMI data for February faded rather quickly amid rising recession risks. This was evident from a generally softer tone around the equity markets which provided additional support to the US dollar and suggested that the path of least resistance for AUS/USD is to the downside. That said, it would still be prudent to wait for a further weakness below the 0.6700 handle before placing fresh bearish bets and positioning for further short-term gains. Market participants now await the release of the US weekly initial jobless claims data. This will be released during the onset of the North American recession. Along with the US Treasury yields and the prevalent risk sentiment, this will influence the US dollar price dynamics and provide some impetus to both the AUD/USD pair today.
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This analysis is based on fundamental and technical views from trusted sources, not advice or invitation. Always remember that this content is intended to enrich the reader's information. Always use independent research first regarding other forex information to be used as a reference in your trading.
