AUD/USD holds recovery above 0.6400 as US Dollar dips – Crypto News – Crypto News
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AUD/USD declines after facing barricades around 0.6900, focus shifts to US PMI AUD/USD declines after facing barricades around 0.6900, focus shifts to US PMI

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AUD/USD holds recovery above 0.6400 as US Dollar dips – Crypto News

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  • AUD/USD clings to gains above 0.6400 as market sentiment improves.
  • The appeal for risky assets improved after reports from Iran indicated that the attack in Isfahan was exaggerated.
  • Weak Australian Employment data positively influence speculation for early RBA rate cuts.

The AUD/USD pair holds gains above the round-level support of 0.6400 in Friday’s early New York session. The Aussie asset recovers as fears of further escalation in Middle East tensions ease after Iran reported that the drone attack did not harm nuclear facilities in Isfahan. Also, the attack from Israel, which has not been confirmed by them but by US officials appeared to be limited in size.  Meanwhile, Iran said that they have no plans for an immediate retaliation.

Market sentiment turns upbeat as the appeal for risky assets improves. The S&P 500 witnesses buying interest at open and recovers losses posted in the European session. 10-year US Treasury yields fall to 4.62% even though Federal Reserve (Fed) policymakers have been endorsing higher interest rates for a longer period.

Fed policymakers have been arguing that they are comfortable with higher interest rates because labor demand is robust and wages are rising. They have warned that the progress in inflation declining to the 2% target is lower than expected.

The US Dollar Index (DXY) whipsaws around 106.00 as the appeal for risk-perceived assets improves. The near-term outlook of the US Dollar is still strong due to upbeat United States economic prospects.

Meanwhile, weak Australian Employment data for March has strengthened speculation for early rate cuts by the Reserve Bank of Australia (RBA). According to the Australian Bureau of Statistics, employers fired 6.6K workers against expectations of fresh 7.2K hiring. In February, 117.6K job-seekers were hired, which was slightly revised higher from 116.5K. The Unemployment Rate rose to 3.8% from 3.7% but remained below the estimates of 3.9%.

 

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