In the early American session, the AUD/USD gained traction.
In his prepared remarks, FOMC Chairman Jerome Powell adopts a dovish tone.
Below 92.50, the US Dollar Index remains in negative territory.
The AUD/USD pair reversed course in the early American session, climbing to a session high of 0.7486 after falling to a daily low of 0.7433 during European trading hours. At the time of writing, the pair was trading at 0.7480, up 0.47 percent for the day.
The AUD/rise USD’s appears to be fueled by renewed USD weakness. The Federal Reserve released FOMC Chairman Jerome Powell’s prepared statements ahead of his hearing before Congress, and the dovish tone caused a USD selloff.
Powell is expected to reaffirm that monetary policy would continue to provide strong assistance until the economy has fully recovered. Powell will also point out that the job market has yet to make the progress required to begin cutting asset purchases.
The US Dollar Index is down 0.4 percent on the day at 92.40, reflecting the negative impact of these remarks on the greenback.
Meanwhile, the Producer Price Index (PPI) increased to 7.3 percent on an annual basis from 6.6 percent in May, according to statistics released by the US Bureau of Labor Statistics. This print outperformed the market’s expectation of 6.8% by a large margin, yet it was insufficient to keep the USD strong.
After presenting the Fed’s semiannual report at 1600 GMT, investors are now waiting for Powell to reply to questions./n
