The Australian dollar (AUD) is on the verge of breaking its losing streak on Friday. AUD/USD pair faces bearish trend
Highlights: The Australian Dollar is trying to end its losing streak against the US Dollar on Friday. The pair is under pressure as the US Dollar is not moving in a clear direction and China’s Caixin Services PMI improved in December. The Australian Dollar is under pressure due to the weakening market sentiment and the […]
Highlights:
- US ADP Employment Change showed 164K new jobs added versus the previous reading of 101K.
- Initial jobless claims dropped to 202K from the previous reading of 220K.
- The Australian dollar was challenged by risk-off sentiment and weaker commodity prices.
- Australian PMI data pointed to a contraction in business activity.
The Australian Dollar is trying to end its losing streak against the US Dollar on Friday. The pair is under pressure as the US Dollar is not moving in a clear direction and China’s Caixin Services PMI improved in December.
The Australian Dollar is under pressure due to the weakening market sentiment and the falling prices of commodities. The latest data from the Japan Bank for International Cooperation showed that the manufacturing and services sectors contracted.
The latest data from the services PMI showed that the economy contracted in the fourth quarter of 2021. According to Matthew De Pasquale, an economist at Judo Bank, the deceleration in Australia’s economy is not yet gaining momentum.
The US Dollar Index is trading in a narrow range, with a slight preference for positive sentiment. The recent decline in Treasury yields may cause some selling pressure on the Greenbacks.
The upbeat employment data released by the US ADP on Thursday could support the US Dollar. According to the report, the private sector added 164K jobs in December, which exceeded the expectations of economists.
The number of people filing for unemployment benefits decreased by 20,000 to 202K for the week ended December 29, which was better than the expected figure of 216K. The S&P Global Composite PMI also showed a slight decline in business activity in December.
More important data on the US employment market is expected to be released in the form of the Nonfarm payrolls and the Average Hourly Wages. On the other hand, the Institute for Supply Management’s services PMI is also expected to provide insight into the health of the sector.
