The AUD/USD pair remains under pressure, consolidating gains inspired by the Reserve Bank of Australia’s decision to increase the Official Cash Rate by 25 basis points to 3.85%, but retreating from a one-week high during early Wednesday in Asia. The market’s cautious mood ahead of top-tier data/events and fears surrounding banking fallouts and mixed US data also weigh on the pair’s prices.
PacWest Bancorp and Western Alliance Bancorp’s shares’ fresh selling triggered banking fears and put a floor under the US Dollar price, especially amid hawkish Fed bets. However, mixed US data and softer US Treasury bond yields prod the greenback buyers ahead of the key US factors up for publishing.
US Factory Orders for March improved to 0.9%, while the US JOLTS Job Openings for the same month eased to 9.59M. Wall Street closed in the red, and the US Treasury bond yields dropped, but the US Dollar Index (DXY) failed to cheer the risk aversion as the greenback’s gauge versus the six major currencies extended the previous day’s U-turn from a three-week high.
Looking forward, AUD/USD traders may initially pay attention to Australia Retail Sales for March, expected to print stagnant growth of 0.2% MoM, before waiting for the US ADP Employment Change for April and the ISM Services PMI for the said month. However, major attention will be given to the Federal Reserve (Fed) announcements and the banking headlines for clear guidance.
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