The AUD/USD pair is trading on a weaker note near 0.6720 in Thursday’s early Asian session. The recent US Job Openings data indicated a continued cooling in the US job market, which has undermined the strength of the US Dollar (USD). Traders are closely watching the Reserve Bank of Australia’s (RBA) Michele Bullock’s upcoming speech, as well as the US ISM Services PMI report scheduled for later on Thursday.
The weaker US JOLT Job Openings data for July has raised expectations of a potential 50 basis points rate cut by the US Federal Reserve (Fed) in September, which could further weigh on the USD against the AUD. Additionally, the Australian economy’s recent performance has been lackluster, with GDP growth reaching just 0.2% in the April-June period, marking its worst performance in over 30 years.
Concerns about a Chinese economic slowdown are also impacting the AUD, as China is a major trading partner for Australia. Chinese economic data, such as the recent Caixin Manufacturing PMI, falling below expectations, has added to the pressure on the AUD.
Traders are awaiting insights from RBA’s Bullock speech for clues about the economic and interest rate outlook. Any positive comments from Bullock could potentially boost the Aussie and limit further downside for the AUD/USD pair.
Australian Dollar FAQs
Here are some key factors that influence the value of the Australian Dollar (AUD):
- The level of interest rates set by the Reserve Bank of Australia (RBA)
- The price of key exports like Iron Ore
- The health of the Chinese economy
- Australia’s inflation rate, growth rate, and Trade Balance
Understanding these factors can help investors navigate the fluctuations in the AUD and make informed decisions about their investments.