The post AUD/USD slides to fresh daily low, eyes 0.6500 mark amid notable USD demand appeared on BitcoinEthereumNews.com.

AUD/USD meets with a fresh supply on Thursday amid a strong pickup in the USD demand. China’s economic woes and diminishing odds for further RBA rate hikes weigh on the Aussie. A positive risk tone could help limit further losses ahead of the key US NFP report on Friday. The AUD/USD pair attracts fresh sellers following an intraday uptick to mid-0.6500s and drops to a fresh daily low during the early part of the European session on Thursday. Spot prices currently trade around the 0.6515 region and for now, seem to have stalled the previous day’s goodish rebound from the lowest level since early May.  The US Dollar (USD) makes a solid comeback from the vicinity of a three-week low touched on Wednesday in the aftermath of the FOMC policy decision and turns out to be a key factor exerting downward pressure on the AUD/USD pair. Apart from this, persistent worries about a slowdown in China – the world’s second-largest economy – undermines the China-proxy Australian Dollar (AUD) and contributes to the downfall. A private survey showed that business activity in China’s manufacturing sector unexpectedly shrank in July for the first time in nine months, underscoring economic woes. Furthermore, the mixed Australian consumer inflation figures on Wednesday dashed hopes for further rate hikes by the Reserve Bank of Australia (RBA), which should weigh on the Aussie and support prospects for a further depreciating move for the AUD/USD pair.  Meanwhile, the Federal Reserve (Fed) acknowledged the recent progress on inflation and cooling in the labor market. Adding to this, Fed Chair Jerome Powell, speaking at the post-meeting press conference, signaled the likelihood of an early rate cut if inflation stays in line with expectations. This, in turn, drags the US Treasury bond yields to a multi-month low, which, along with a…

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Filed under: News - @ August 1, 2024 10:26 am