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AUD/USD steadies near 0.7100 as Fed hike odds slip
HSBC says market pricing for a September Fed hike has fallen to its lowest since mid-June, with traders also looking to Australian July jobs data.
The Australian dollar held roughly steady near 0.7100 against the US dollar in European trading, and sat close to an over two-month high around 0.7130 reached on Monday, according to FXStreet. The pair was described as broadly firmer as the US dollar faced pressure.
FXStreet cited HSBC Asset Management commentary that pricing for a potential September Federal Reserve rate hike has dropped to the lowest level since mid-June. HSBC also pointed to the interplay between Fed communications and US inflation data, arguing a softer labor report has weighed on rate expectations, while TD Securities expects the Fed to remain on hold over its forecast horizon.
At the time of writing, the US Dollar Index, which tracks the greenback against six major currencies, was near 99.65 after a modest rebound from a fresh two-month low around 99.30 on Monday. For AUD/USD, FXStreet noted the pair traded at 0.7103, holding above the 20-day exponential moving average near 0.7043, with immediate support flagged at 0.7080.
Investors were also set to watch Australian employment data for July, scheduled for Thursday, with expectations for job growth of 15K versus 73.6K in June. The Unemployment Rate is forecast to stay at 4.4%, FXStreet said.
Latest closeDollar index 99.64 ▼0.3%