The AUD/USD pair has fallen to near 0.6650 as the US Dollar continues to strengthen, fueled by expectations of the Federal Reserve keeping its current interest rate framework. Investors are eagerly awaiting the preliminary US S&P Global PMI data for June, with concerns rising over underperforming figures in major economies.
Market sentiment remains cautious as global PMI figures for June have been below expectations in key economies, leading to a sell-off in Asian and European markets. The US Dollar Index is approaching the crucial resistance level of 106.00 as investors seek safe-haven assets amid economic uncertainty.
The CME FedWatch tool indicates that interest rates are expected to start declining from September, following in the footsteps of other central banks such as the ECB, BoC, and SNB, which have already initiated policy-easing measures. Despite this, the Australian Dollar is facing pressure across the FX market, with the RBA expected to maintain its current interest rate of 4.35% due to higher price pressures.
Overall, the AUD/USD pair is facing downward pressure amid a strengthening US Dollar and concerns over global economic performance. The market awaits the US PMI data to gauge the impact on the US economy, while central banks around the world continue to adopt easing policies to support growth. Going forward, the focus will be on how the Fed’s interest rate decisions will influence currency markets and global economic trends.
