- AUD/USD climbs above 0.6400 after the Federal Open Market Committee (FOMC) policy meeting.
- FOMC decided to hold the rate steady, as widely expected; ADP Private Payrolls rose 113K in October vs. 89K prior, below consensus.
- International Monetary Fund (IMF) highlighted that further policy tightening is required from the RBA.
- Investors await Australian Trade data and US weekly. Jobless Claims on Thursday.
The AUD/USD pair gains momentum above the 0.6400 mark during the early Asian trading hours on Thursday. The pair attracts some buyers following the FOMC pause and mixed US economic data. The pair currently trade around 0.6409, gaining 0.25% on the day. Meanwhile, the US Dollar Index (DXY) faces some selling pressure near 106.67 after retreating from the weekly highs of 107.11. US Treasury bond yields edge lower, with the 10-year standing at 4.73%.
As widely expected, the Federal Open Market Committee (FOMC) policy meeting decided to maintain the interest rate steady and hold the tightening bias. The FOMC noted that tighter conditions are expected to impact economic activity and the labor market while mentioning that the recent rises in long-term bond rates lowered the need for more tightening. The probability of a December increase being discounted by the market is around 22%, according to the CME FedWatch Tool.
About the data, ADP Private Sector Payrolls rose 113K in October from 89K in September, below consensus expectations of a 150k rise. Additionally, the JOLTS jobs opening data unexpectedly rose to 9.553M. The ISM Manufacturing PMI fell to 46.7 in October, lower than the market consensus of 49. The figure registered the lowest reading since July.
On the Aussie front, the Reserve Bank of Australia (RBA) will announce its policy decision at its November meeting next week. The market anticipates the central bank to raise the rate by 25 basis points (bps) at the forthcoming meeting, due to higher inflation.
Furthermore, the International Monetary Fund (IMF) highlighted in its annual assessment of the Australian economy that the economy is resilient while inflation remains sticky, arguing that further policy tightening is required from the RBA.
Looking ahead, the Australian Trade Balance for September and US employment data, including the weekly jobless claims will be due on Thursday. Friday's Nonfarm Payrolls (NFP) will be the closely watched event by market participants on Friday.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.