• AUD/USD has faced selling pressure near 0.6570 amid a sharp recovery in the US Dollar Index.
  • The USD Index recovers as the odds of an interest rate cut by the Fed is fading away.
  • Australian Employment remains softer amid higher interest rates.

The AUD/USD pair retreats from 0.6570 as the US Dollar Index (DXY) has recovered swiftly in the early New York session. The Aussie asset has faced pressure as the market mood has turned cautious amid uncertainty over Federal Reserve (Fed) rate cut bets.

The S&P500 futures have surrendered majority of gains generated in the European session, indicating that investors’ risk-appetite has declined again. The USD Index has recovered strongly to near monthly high of 103.60 as the odds of an interest rate cut decision by the Fed in March are fading away. 10-year US Treasury yields have climbed to near 4.12%.

Fed policymakers have been reiterating the need of keeping interest rates escalated for a longer period due to robust consumer spending and strengthening labor market conditions. The US Department of Labor has reported that weekly jobless claims were significantly lower. Individuals claiming jobless benefits for the week ending January 12 were lower at 187K versus. expectations of 203K and the prior reading of 207K.

Meanwhile, investors await commentary from Atlanta Fed Bank President Raphael Bostic. Fed Bostic is expected to maintain a hawkish guidance on interest rates. He is expected to endorse higher interest rates till the Fed get confident that inflation will return to 2% in a sustainable manner.

The Australian Dollar remains under pressure amid weak labor market data for December. The Australian employers laid-off 65.1K against 72.6K additions in November. The Unemployment Rate remained in-line with estimates and prior release of 3.9%. This has provided some relief to Reserve Bank of Australia (RBA) policymakers, which are consistently focusing on brining down inflation to 2%.


Today last price0.6558
Today Daily Change0.0008
Today Daily Change %0.12
Today daily open0.655
Daily SMA200.6735
Daily SMA500.6641
Daily SMA1000.6517
Daily SMA2000.6583
Previous Daily High0.6595
Previous Daily Low0.6525
Previous Weekly High0.6735
Previous Weekly Low0.6647
Previous Monthly High0.6871
Previous Monthly Low0.6526
Daily Fibonacci 38.2%0.6552
Daily Fibonacci 61.8%0.6568
Daily Pivot Point S10.6518
Daily Pivot Point S20.6487
Daily Pivot Point S30.6449
Daily Pivot Point R10.6588
Daily Pivot Point R20.6626
Daily Pivot Point R30.6658