The post AUD/USD advances toward 0.6400 as US Dollar dips ahead of Fed policy appeared on BitcoinEthereumNews.com.

AUD/USD approached 0.6400 as the US Dollar corrected amid improved market mood. 10-year US Treasury yields jumped to near 4.89%, reflecting the confidence of investors in the US economic strength. Caixin Manufacturing PMI data for October is seen expanding to 50.8 vs. the former release of 50.6. The AUD/USD pair extends gains above the crucial resistance of 0.6368 in the early New York session. The Aussie asset is approaching the round-level resistance of 0.6400 as the US Dollar has corrected after failing to recover above the 106.70 resistance. The S&P500 opens on a strong bullish note as investors hope that the Federal Reserve (Fed) is done with hiking interest rates and a neutral commentary is expected for the second time in arrow. The market mood has turned cheerful as no more interest rate hikes from the Fed would bring a sense of optimism to US firms. Higher US bond yields are responsible for expectations pointing to a steady interest rate decision by the Fed. The 10-year US Treasury yields jumped to near 4.89%, reflecting the confidence of investors in the strength of the US economy and expectations that the Fed will keep interest rates higher for a significantly longer period. The US Dollar Index (DXY) corrects to near 106.28 as investors shift focus to the US ADP Employment Change and the ISM Manufacturing PMI data for October, which will be announced on Wednesday. Investors will keenly watch the US factory data as it has been contracting consistently for the last 11 months. S&P Global survey showed that private factory PMI met the 50.0 threshold in October. Meanwhile, the Australian Dollar will be impacted by the Caixin Manufacturing PMI data for October. As per the consensus, the economic data expanded to 50.8 vs. the former release of 50.6. It is worth…

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Filed under: News - @ October 30, 2023 8:16 pm