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AUD/USD pair trades near 0.6670 on Friday during the early Asian trading hours. The growing speculation about the US Fed rate cut and softer US economic data weigh on the USD acts as a tailwind for AUD/USD.
Equity markets surged as the ECB reduced its key policy rates by 25bps and indicated more cuts might come if inflation improves. However, gains lessened late in the US session as attention shifted to the upcoming US non-farm payrolls report. The yield on the US 10-year increased 1bps to 4.29%. US Jobless Claims were slightly higher than expected at 229k compared to the forecast of 220k, suggesting an upward trend. In contrast, non-farm productivity growth for Q1 was 0.2% q/q, surpassing the expected 0.0%. Unit labor cost also came in lower than expected at 4% seasonally adjusted annual rate. Overall, this data suggests a cooling labour market ahead of tonight’s key non-farm payrolls report, where a 180k increase in jobs is anticipated.
Economic data to watch out for.
• CN – May. Exports y/y
• CN – May. Imports y/y
• AU – RBA’s Hauser Fireside Chat
• EU – ECB’s Schnabel Speaks
• EU – Q1. GDP SA y/y
• US – May. Average Hourly Earnings y/y
• US – May. Unemployment Rate
• US – Apr. Wholesale Trade Sales m/m
• US – Q1. Household Change in Net Worth
• US – Apr. Consumer Credit
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6667 |
| AUD/NZD | 1.0766 |
| AUD/JPY | 103.77 |
| AUD/CNY | 4.8379 |
| AUD/EUR | 0.6118 |
| AUD/GBP | 0.5112 |
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