AUD/USD bounces back a little from its daily bottom and finding some comfort around the 0.6800 region.

Market Analytics and Considerations

Key Notes

• On Thursday, there is some selling momentum on the AUD/USD currency pair, but the bottom appears protected.
• Fears of an impending recession limit market optimism and undercut the threat Australian dollar.

Increasing expectations on lower Fed rate increases put pressure on the USD and serve to prevent the major from falling further.

During the early European session, the AUD/USD pair rises to the upper threshold of its daily trading zone after finding solid support close to the 0.6800 level. The pair is currently selling in the region of 0.6830 and 0.6835, remaining significantly underneath the multi-month peak that was rigorously tested on Wednesday his week.

In reality, according to the conclusions of the December FOMC meeting on monetary policy that were publicly revealed on Wednesday, officials were in supportive of gradually increasing cost of borrowing. This further weakens the US dollar and maintains the yields on US Treasury bonds at a 3 trough. Nonetheless, investors don’t seem eager to make risky wagers before the US macro statistics.

The Weekly Initial Jobless Claims survey and the ADP report on jobs will be released on Thursday’s US economic schedule, correspondingly. This will affect the USD dynamics and give the AUD/USD pair some momentum, coupled with the US bond yields and the general risk mood. The eagerly anticipated US employment report (NFP), scheduled for release on Friday, will continuing to command attention.

Key technical levels to monitor