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AUD/USD holds near 0.6940 as traders await US jobs data

CME FedWatch shows markets are pricing about 74% odds the Fed holds rates in October, versus 36% a week earlier.

Reported · Written up by our desk · Major Pairs

AUD/USD moved higher to around 0.6940 in early European trading on Friday, while FXStreet said the pair’s broader bearish bias is being supported by oversold conditions.

The report pointed to a possible shift in risk sentiment later in the day as traders look ahead to key US economic releases, including September employment data.

FXStreet said analysts expect US job growth to slow, with the unemployment rate forecast at 4.1% for a third straight month, and that a stronger-than-expected outcome could reinforce expectations for further Fed rate tightening, supporting the US dollar.

On the Australia side, the outlet noted that expectations for an RBA hike in November have eased after CPI came in line with forecasts, with money markets now betting the central bank is likely to keep rates unchanged, which the report said corresponds to roughly a 20% probability of a hike.

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