AUDUSD trades down at 0.6410, despite positive US economic data.
AUDUSD is trading down in the Asian session on Friday, at 0.6410, reverting from the weekly high. The pair is under pressure due to positive US economic statistics in general. Higher US Treasury rates, and conflicting feelings about the US Federal Reserve tightening monetary policy at its September meeting.
Furthermore, waning US-China optimism, along with China’s economic woes. Put pressure on the Australian Dollar (AUD) as a result of the two countries’ complicated export-trade connections.
The AUDUSD pair was weakened by improved US jobless statistics.
Initial Jobless Claims in the United States indicated favorable job circumstances. Which have now been confirmed. This has raised concerns about the US inflation forecast. The index decreased to 230K for the week ending August 18. Falling short of expectations of keeping constant at 240K.
However, US Durable Goods Orders fell 5.2% in July. Contrary to the market forecast of 4%, and were down from 4.4% in June.
Traders are becoming concerned as a result of the Fed’s contradictory pronouncements.
Following Fed Chairman Jerome Powell’s address at the Jackson Hole Symposium on Friday. The AUDUSD pair is dropping due to conflicting feelings about further interest rate rises by the US Fed.
Furthermore, former St. Louis Federal Reserve President James Bullard made hawkish statements. Which bolstered the US Dollar (USD). “The reacceleration could put upward pressure on inflation, making it impossible for the economy to recover,” Bullard warned. “The Fed is expected to begin cutting interest rates soon,” according to Bloomberg. In contrast, Federal Reserve Bank of Philadelphia President Patrick Harker hinted at the end of the rate rise trajectory. While the President of the Federal Reserve Bank of Boston maintained retaining a leaning toward holding rates at higher levels for an extended period of time.
As Fed Chair Powell’s speech approaches, the US Dollar Index (DXY). Which gauges the performance of the Greenback versus six major currencies, continues to extend gains. At the time of writing, the current price is trading at 104.30. Traders will closely watch the central banks’ statements for clues about economic conditions and the inflation forecast, which will impact the Fed’s decision on future monetary policy.
