AUD/USD holds positive ground above 0.6500 on weaker US Dollar – Crypto News – Crypto News
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AUD/USD holds positive ground above 0.6500 on weaker US Dollar – Crypto News

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  • AUD/USD gains ground near 0.6525 in Thursday’s early Asian session. 
  • The Fed kept its benchmark rate in a targeted range between 5.25%-5.50%, as widely expected.
  • The recent Australia’s March retail sales dampened speculation that the RBA’s next move in interest rates might be up.

The AUD/USD pair extends recovery around 0.6525 during the early Asian session on Thursday. The Federal Reserve (Fed) held its interest rates steady at 5.25–5.50% at its meeting on Wednesday, citing a “lack of further progress” in getting inflation back down to its 2% target. The Greenback edges lower after the monetary policy meeting on the Fed’s cautious stance on its future trajectory.

The US Fed kept its benchmark short-term borrowing rate in a targeted range between 5.25%-5.50%, as widely expected. During the press conference, Fed Chair Powell emphasized the progress on inflation has stalled recently and it would take longer than previously thought before the Fed had the confidence that inflation would move toward its 2% target. Powell stated that if hiring stayed strong and “inflation is moving sideways,” that “would be a case in which it would be appropriate to hold off on rate cuts.” This, in turn, might boost the US Dollar (USD) and cap the upside of AUD/USD. 

Elsewhere, the US ISM Manufacturing PMI came in worse than estimated, falling to 49.2 in April from March’s expansionary reading of 50.3. Meanwhile, ADP Employment Change showed an increase of 192,000 jobs in April from the upwardly revised March figure of 208,000, beating the 175,000 expected. Finally, the JOLTS Job Openings dropped to 8.488 million in March from 8.813 million in the previous reading, marking the lowest level of job openings reported. 

On the Aussie front, Australia’s March retail sales were weaker than expected, dropping by 0.4% MoM in March from the previous reading of a 0.3% rise. This data dampened recent speculation that the Reserve Bank of Australia’s (RBA) next move in interest rates might be up.

 

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