Home Forex AUD/USD bulls regained 0.6900 as USD fluctuated

AUD/USD bulls regained 0.6900 as USD fluctuated

by SuperiorInvest
  • The risk-on impulse favored risk-perceived currencies such as the Australian dollar.
  • The U.S. housing market continues to deteriorate, as evidenced by declining existing home sales.
  • Fed officials favor a slowdown in rate hikes, although the higher and longer stance remains unchanged.

AUD/USD rallied slightly midway through the North American session on Friday after a weak employment report from Australia prompted a dip below 0.6900. It’s a different story on Friday, with AUD/USD recovering a bit while the US dollar (USD) pars its earlier gains. At the time of writing, AUD/USD is trading at 0.69600, up 0.74% from its opening price.

AUD/USD rose, supported by positive investor sentiment, mild USD

Wall Street continues to show positive investor sentiment. Data from the United States (US) worsened sharply as existing home sales fell 1.5% in December, the lowest level since November 2010, according to the National Association of Realtors.

“December was another tough month for buyers who continue to struggle with limited inventory and high mortgages rates” said NAR Chief Economist Lawrence Yun. “However, expect sales to pick up again soon as mortgage rates have fallen significantly after peaking late last year.”

Meanwhile, retracement inwards US dollar index, which tracks the dollar’s performance against its peers, posted minimal gains of 0.06% at 102.123 after hitting a daily high of 102.552. Conversely, U.S. Treasury yields rose, with the benchmark 10-year bond rising nine basis points to 3.488%.

Meanwhile, several Fed officials went beyond the coverage. Philadelphia Fed President Patrick Harker opened the door to a rate cut, saying: “A 25 basis point increase will be appropriate going forward. He expects the US economy to grow by 1%. Unemployment rate jump to 4.5% from 3.5%. Later, Kansas City Fed President Esther George said the Federal Reserve needed to be “patient” to see if service sector inflation eased.

AUD/USD Key Technical Levels

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