As US Dollar Faces Selling Pressure, AUD/USD is Nearing 0.6800

The AUD/USD pair is getting close to 0.6800 at the start of the European session. Investors buy the asset when the US dollar index (DXY) decreases. The Aussie Dollar went up because investors were more willing to take risks. The major has won for the second day and is ready to show more promise.

AUDUSD

After losing 106.00, the US Dollar has gone down. The US Dollar is close to 105.70 and could fall to a three-month low of 105.34. S&P500 futures keep their gains from Tokyo. When US markets are closed on Thanksgiving Day, the 500-stock basket should be quiet. Yields on 10-year Treasury bonds are less than 3.6%.

The minutes from the Federal Open Market Committee (FOMC) show that Fed policymakers are becoming less hawkish, so there won’t be a more significant rate hike. Teams working for Fed chair Jerome Powell have pushed for slowing the rate hikes to reduce financial risks and keep an eye on the Fed’s efforts to slow inflation.

 

ANZ Bank economists say that the dollar fell because inflation in the US was lower than expected. They also say the market’s reaction to the current inflation print is too strong. The target for inflation was 2%, but it stayed above 7.7%. “Believing that inflation will return to 2% is not enough for the Fed,” they said.
Poor S&P PMI data did not affect the Aussie Dollar. Instead of the expected 52.4, the Manufacturing PMI was 51.5. Services PMI fell from 49.1 to 47.2.

Conclusion

Staying above the 100-day SMA helps more gains happen.

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