AUD/USD struggles near 0.6850 as risk-on mood ebbs ahead of Aussie employment, US inflation – by anilpanchal7 AUDUSD RiskAppetite China Inflation CentralBanks
oliday, fears emanating from the dragon nation and a light calendar also challenge the Aussie pair traders around the mid-0.6800s by the press time.
Also challenging the upside momentum is the latest news from Reuters suggesting that US President Joe Biden is to hit China with broader curbs on US chip and tool exports. On the same line could be the analysis suggesting a 20-year low oil demand from China due to covid curbs, shared by Reuters. That said, US Treasury Secretary Janet Yellen mentioned that, during the CNN interview on Sunday, “Fed is going to need skill and luck to bring inflation down while maintaining labor market strength.” The policymaker also mentioned that US consumers could experience a spike in gas prices in winter when the European Union significantly cuts back on buying Russian oil.
It should be noted that a divergence between Fed Chairman Jerome Powell’s hawkish tone and Reserve Bank of Australia Governor Philip Lowe’s hesitance in suggesting aggressive rate hikes seemed to have also challenged the AUD/USD buyers of late.