AUD/USD holds steady above 0.6500 on softer USD, ahead of US Jobless Claims, FedSpeak
- AUD/USD regains positive traction following the overnight pullback from a one-week top.
- A softer USD and a positive risk tone benefit the Aussie amid the RBA’s hawkish stance.
- Traders look to the US macro data and the Fed speaks for some meaningful opportunities.
The AUD/USD pair attracts some dip-buyers on Thursday and sticks to its modest intraday gains, around the 0.6520 area during the first half of the European session. The uptick is sponsored by a softer tone surrounding the US Dollar (USD), though lacks bullish conviction and warrants some caution before positioning for an extension of the recent bounce from a three-month low touched last week.
The USD bulls opt to move to the sidelines and look for more clarity on US President-elect Donald Trump's proposed policies before placing fresh. Moreover, the initial reaction to Russian President Vladimir Putin's approval to lower the threshold for nuclear strikes on Tuesday turned out to be short-lived after comments from Russian and US officials eased concerns about a nuclear war. This, in turn, remains supportive of the upbeat market mood, which further seems to undermine the safe-haven buck and benefits the risk-sensitive Aussie.
Furthermore, the Reserve Bank of Australia's (RBA) hawkish stance offers additional support to the Australian Dollar (AUD). In fact, the minutes of the November RBA meeting released earlier this week indicated that the board members remained vigilant to upside inflation risks and stressed the importance of maintaining a restrictive monetary policy. Meanwhile, expectations for a less dovish Federal Reserve (Fed) should continue to act as a tailwind for the USD and hold back traders from placing aggressive bullish bets around the AUD/USD pair.
In fact, the markets are now pricing in just over a 50% chance that the US central bank will lower borrowing costs by 25 basis points in December amid expectations that Trump's taunted tariffs and tax cuts could reignite inflation. The outlook remains supportive of elevated US Treasury bond yields and supports prospects for the emergence of some USD dip-buying. This, in turn, should contribute to capping the upside for the AUD/USD pair. Traders now look to the US macro data and speeches by influential FOMC members for a fresh impetus.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.11% | 0.08% | -0.66% | -0.12% | -0.20% | 0.07% | -0.14% | |
| EUR | -0.11% | -0.03% | -0.76% | -0.23% | -0.30% | -0.04% | -0.25% | |
| GBP | -0.08% | 0.03% | -0.72% | -0.20% | -0.29% | -0.00% | -0.22% | |
| JPY | 0.66% | 0.76% | 0.72% | 0.54% | 0.47% | 0.71% | 0.53% | |
| CAD | 0.12% | 0.23% | 0.20% | -0.54% | -0.07% | 0.20% | -0.02% | |
| AUD | 0.20% | 0.30% | 0.29% | -0.47% | 0.07% | 0.27% | 0.05% | |
| NZD | -0.07% | 0.04% | 0.00% | -0.71% | -0.20% | -0.27% | -0.22% | |
| CHF | 0.14% | 0.25% | 0.22% | -0.53% | 0.02% | -0.05% | 0.22% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
