AUD/USD ticks up to near 0.6510 as US Dollar corrects further
The AUD/USD pair edges higher to near 0.6505 during the European trading session on Thursday. The Aussie pair ticks up as the US Dollar (USD) extends its correction amid rising United States (US) economic concerns due to the ongoing federal shutdown.
At the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.18% lower to near 100.00. The USD Index faced selling pressure on Wednesday after posting a fresh over five-month high near 100.35.
Broadly, the outlook of the US Dollar remains firm as traders have trimmed bets supporting more interest rate cuts by the Federal Reserve this year. According to the CME FedWatch tool, the probability of the Fed cutting interest rates by 25 basis points (bps) to 3.50%-3.75% in the December meeting has eased to 62.5% from 68.6% seen on Tuesday.
Fed dovish bets eased after the release of the US ADP Employment Change and the ISM Services PMI data for October released on Wednesday. The ADP reported that the private sector added added fresh 42K fresh jobs, higher than estimates of 25K. In September, employers laid off 29K workers. The Services PMI came in at 52.4, the highest level seen in eight months.
Though the Australian Dollar (AUD) trades marginally higher against the US Dollar, the former is under pressure against its other peers despite upbeat monthly Trade Balance data for September.
Earlier in the day, the Australian Bureau of Statistics reported that the Trade Surplus widened to 3,938 million, beat estimates of 3,850 million and the prior reading of 1,111 million. Exports returned from black and rose by 7.9%. Meanwhile, Imports rose by 1.1% MoM, compared to a previous rise of 3.3%.
Source : Fxstreet.com
