AUDUSD aims to touch 0.6450 on the heels of the Greenback’s decline.
AUDUSD breaks a two-day losing trend, trading higher at 0.6440 during Friday’s European session. The pair is gaining strength as the US Dollar (USD) retraces some of its intraday gains.
The decline in US Treasury rates may have curtailed the Greenback’s upward potential.
The decline in US Treasury rates may have curtailed the Greenback’s upward potential. The 10-year US bond yield is at 4.46%. The US Dollar Index (DXY), which compares the performance of the US dollar to six other currencies. At the time of writing, the US dollar was trading at approximately 105.60.
Market players are likely expecting economic data releases, including preliminary S&P Global PMIs for September in the United States (US). These statistics may give useful insights into economic circumstances and aid traders in finding potential trading opportunities centered on the AUDUSD pair.
During its meeting on Wednesday, the Federal Reserve (Fed) decided to keep interest rates in the 5.25-5.50% level. In a following news conference, Fed Chairman Jerome Powell underlined the Fed’s commitment to reaching a 2% inflation objective. Powell also stated that the Fed is willing to hike interest rates if necessary. The Fed’s aggressive approach might put pressure on the Australian dollar.
On the other hand, a poll found that Australia’sAfter two months of contraction, the private sector expanded in September, offering some support to the AUDUSD pair. The Judo Bank Flash Australia Composite PMI increased from 48.0 in August to 50.2 in the reporting month.
Australian Services PMI hit a four-month high of 50.5 it give postive sentiment to AUDUSD .
Furthermore, the Australian Services PMI hit a four-month high of 50.5 in September, up from 47.8 in August. The Manufacturing PMI, on the other hand, remained in contraction zone, falling to 48.2 from 49.6 the previous month. This industrial sector decline has dampened positive sentiment surrounding the Australian Dollar (AUD), prohibiting strong bullish wagers on the currency.
