The Aussie pair moved higher past 0.7250, keeping the recent jump, as Asia-Pacific traders kick-start the key week. That said, the AUDUSD pair picks up close to 0.7265 by the press time even as markets in Australia witness regional holidays while China traders praise national off.
The risk gauge pair profited from a pullback in the US Dollar Index as traders applauded the surprise passage of the bill to the US government shutdown. Also favoring the mood were the optimistic comments by US President Joe Biden and House Speaker Nancy Pelosi suggesting the much-awaited infrastructure spending bill will be out soon.
Going forward, the Fed’s preferred inflation gauge, namely the US Core PCE Inflation jumped to the highest level since 1991 and Michigan consumer confidence for September also got a positive revision. This helps the Fed speech to keep the hawkish bias towards tapering while also holding the “no rate hike for now” view.
Amongst these plays, US equities closed higher while the US Treasury yields and the US Dollar Index weighed down during the first day of October. However, the gold prices gained and helped the Aussie traders to focus more on positives for short covering moves on Friday.
Looking forward for today, an absence of major data/events, as well as off in China and partial activity in Australia, will restrict short-term AUDUSD moves. Even so, the risk catalysts concerning China, COVID-19, the Fed and US stimulus will be crucial to watch for fresh impulse. Above all, this week’s Reserve Bank of Australia (RBA) Monetary Policy Meeting and the US Nonfarm Payrolls will be a basis for the pair even as the RBA policymakers have rejected plans for any action and the Fed is good to witness softer data.
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