Bears in the AUD/USD currency pair take a pause near the most recent bottom since December 2020.
The National Cabinet meets today in Australia, where the situation is still dire.
US ISM PMI and Jobless Claims support aggressive Fed rhetoric and a stronger USD.
The markets will be entertained by virus news and the NFP report, but pre-data worry may limit movement.
Despite refusing any loss below 0.7459 in the early hours of Friday am in Asia, the AUD/USD remains depressed around the recent low of 2021. As the important day begins, though, the quotation consolidates recent losses near 0.7470.
A prolonged spike in coronavirus (COVID-19) cases could be the driving force behind the AUD/USD depreciation. In contrast to the firmer US economics and hawkish Fedspeak that fuel the US dollar’s rise, mixed data at home is also weighing on the quotation.
According to ABC News, Australia’s covid count for 2021 was updated with 49 additional instances on June 30. As a result of the report, state governments began pressuring the federal authorities to speed up immunizations and relax the rejection of AstraZeneca jabbing. Nothing has changed, and the National Cabinet will meet today to determine the degree of vaccination required for unlock. The meeting could reveal information on ways to speed up vaccination, thus AUD/USD traders will be interested to learn more about AstraZeneca’s vaccine utilization for new impulse.
In terms of facts, Australia’s May trade balance fell short of the 10000M estimate, although imports and exports rebounded. In addition, the Caixin Manufacturing PMI in China fell short of expectations and previous readings in June. The US ISM Manufacturing PMI, on the other hand, came in slightly lower than predicted at 61.00, but the components, particularly the inflation component, are encouraging. The US dollar was also bolstered by lower-than-expected Weekly Jobless Claims and their four-week average.
Following the announcements, Philadelphia Federal Reserve Bank President Patrick Harker told the Wall Street Journal that he believes bond-buying tapering should begin later this year.
It’s worth noting that the International Monetary Fund (IMF) recently increased its US GDP growth prediction to 7.0 percent from 6.4 percent in April due to extraordinary fiscal and monetary support, putting the greenback bulls on the back foot.
In the midst of these maneuvers, Wall Street benchmarks held steady on Thursday, with the US 10-year Treasury yield rising 1.5 basis points to 1.459 percent. In early April, the US dollar index (DXY) reached a new high.
With a light calendar, the pre-NFP trade slump may limit AUD/USD swings in the future. However, the bears may be encouraged by the covid troubles in Asia-Pacific and the recent aggressive Fedspeak.
Read: NFP Predictions: Four Reasons Why June’s Jobs Report Could Be Bad for the Dollar
A daily close below 0.7477, the last yearly low, points to August 2020 tops near 0.7415 for AUD/USD bears. During the corrective downturn, the 0.7500 threshold and the 200-SMA near 0.7570 act as local obstacles to overcome./n
