AUD/USD FINDS FRAGILE FOOTING AMID MIXED ECONOMIC SIGNALS, USD SOFTNESS
AUD/USD experiences a modest lift from a daily low of 0.6287 amidst a generally softer USD.
The Reserve Bank of Australia maintains a dovish posture, holding rates steady at 4.10%, while recent Australian Services PMI outperforms expectations.
Upcoming economic indicators, including the Australian Balance of Trade and US Initial Jobless Claims, to provide further directional cues for the pair.
The Australian Dollar (AUD) gained some momentum against the Greenback (USD) on Wednesday after printing a daily low of 0.6287, though the former was bolstered by overall US Dollar softness across the board. As the Asian session begins, the AUD/USD trades at 0.6234, almost flat.
Australian Dollar cautiously rebounds from weekly lows, navigating through the juxtaposition of a dovish RBA stance and a slightly weakening US Dollar
Wall Street finished Wednesday’s session in an upbeat mood, which usually carries on to the next day's Asian session. Summarizing economic data in the United States (US) showed us the labor market is loosening a bit following September’s ADP Employment Change report, with hirings rising 89K, below estimates of 150K, and last month’s 180K. In the meantime, business activity reported by the ISM witnessed the services index easing to 53.6, as foreseen but below August’s 54.5.
On the Australian front, the latest monetary policy reunion of the Reserve Bank of Australia (RBA) on October 3 was perceived as a dovish one, with the central bank holding rates at 4.10%. Although the RBA stated the board is determined to return inflation to its target, it was mainly ignored by AUD/USD traders, sending the pair toward its weekly lows of around 0.6280s.
On Wednesday, the Aussie’s economic calendar revealed the September Judo Bank Services PMI jumping above estimates of 50.5 to 51.8, crushing August’s figures. Today, the Balance of Trade is expected to print a surplus of A$8.725B. The US agenda will feature Initial Jobless Claims, the Balance of Trade, and Fed speakers.
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