AUD/USD threatens 0.6500 as the US labour market softens

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In Wednesday’s session, the AUD/USD gained traction, as the USD is trading weak against most of its rivals following fresh soft employment figures. On

the Aussie front, Australia reported weak housing data during the Asian session, while the Monthly ConsumerThe ADP Employment Change figures from the US missed the consensus in August. The figure came in at 177,000, while the markets expected 195,000, significantly lower than the last reading of 371,000. In addition, the Q2 Gross Domestic Product was revised

downwards to 2.1% YoY. The immediate reaction to the lower-than-expected ADPs and JOLTs from Tuesday was hopes that the tightening cycle from the Fed would end, which fueled a sharp decline in the 2,5 and 10-year yields to their lowest in three weeks. However, the CME FedWatch tool reflects that the odds of a hike in the November meeting slightly fell, but they remain high, around 44%.

report this Friday, a Core Personal Consumption Expenditures reading on Thursday and a Consumer Price Index figures from August next Friday. Those inflation figures will likely weigh more on the Fed’s upcoming decisions.indicates a neutral to bullish outlook for the AUD/USD in the short term.

 

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