AUD/USD recovery eyes 0.6550 on mild appreciation to US debt ceiling deal, focus on Aussie inflation, US NFP – by anilpanchal7 AUDUSD NFP Inflation Politics RiskAversion
That said, the hopes of avoiding the catastrophic US default recently put a floor under the risk-barometer AUD/USD pair. Adding strength to the pair’s consolidation of monthly losses are the hopes of witnessing upbeatinflation data from Australia and optimism about the Reserve Bank of Australia’s rate hikes, considering the recently firmer Aussie data and the Reserve Bank of New Zealand’s rate lift.
On Saturday, US President Joe Biden and House Speaker Kevin McCarthy reached a tentative deal to raise the Federal government's $31.4 trillion debt ceiling through January 2025. However, the agreement lacks support from some of the leftists and rightists due to the compromises involved. That said, the debt ceiling deal needs to pass through the House on Wednesday and the Senate by June 05 to avoid the looming ‘catastrophic’ default.
Even so, comparatively stronger US data and hawkish Fed bets challenge the Aussie pair buyers ahead of the top-tier US and Australia economics. On Friday, US Durable Goods Orders for April came in better-than-forecast to 1.1% from 3.3% prior, versus -1.0% expected. Further, Nondefense Capital Goods Orders ex Aircraft, also known as the Core Durable Goods Orders, marked upbeat growth of 1.4% compared to -0.2% anticipated and -0.6% previous readings. Additionally, the Core PCE Price Index for the said month rose past market forecasts and previous readings of 0.3% MoM and 4.6% YoY to 0.4% and 4.7% in that order.
Looking ahead, Australia’s Monthly Consumer Price Index and the US Nonfarm Payrolls may entertain AUD/USD bulls but major attention will be given to the US Congress voting on the debt ceiling deal.AUD/USD recovery remains elusive unless crossing the previous support stretched from March, around 0.6580 by the press time.
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