AUDUSD gains bids, extending the previous day’s rebound from a seven-week low.
AUDUSD pair is bracing for major US data around 0.6825, continuing the previous day’s recovery from a seven-week low in early Friday.
News from China and Japan appear to be driving the AUDUSD current price movements.
China’s desire for a signing of an agreement to provide combat drones, as well as a cease-fire in the Ukraine-Russia war, appear to send confusing geopolitical messages. In the same vein, US Senators’ attempt to prohibit Chinese carriers from flying over Russia on American flights renews market concerns. While Treasury Secretary Janet Yellen’s willingness to engage in discussion with Beijing confronts risk-aversion. Additionally, China’s Commerce Ministry asked the US to provide favorable trade circumstances while also indicating a willingness to take additional steps to revitalize and grow consumption.
Geopolitical worries and hawkish Fed concerns keep bears optimistic ahead of the January US Core PCE Price Index.
Aussie duo appears to be cheering the newest stories from China and Japan, which appear to be taming the earlier risk-off mentality. But, concerns over Russia and US-China ties, together with hawkish Federal Reserve (Fed) concerns, are keeping a lid on the bulls. The comments of Japan’s choice for new central bank governor, Kazuo Ueda, appear to have provided enough volatility to the yields. The cause might be connected to the new Bank of Japan (BoJ) Governor’s words, which initially supported the cheap money policy before indicating a willingness to tighten if inflation pressures increase.
US statistics on the Personal Consumption Expenditure (PCE) Price, weekly Initial Jobless Claims, and the Chicago Fed National Activity Index appear to keep Fed hawks at the table.
Among these man oeuvres, Wall Street closed on the plus side, the S&P 500 Futures recently failed to continue the recovery advances from the monthly low, falling to 4,013, down 0.13% intraday at the most recent close. Also, the US 10-year Treasury bond rates are hovering around 3.875%, making it less active on the day, while the US two-year bond coupons are hovering around 4.69% as of press time.
Moving on, risk catalysts may entice risk-barometer AUDUSD pair traders ahead of the Core PCE Price Index, which is predicted to rise 4.3% year on year, compared to 4.4% before.
