Audusd Jumps Higher

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Audusd Jumps Higher

Aud/Usd Jumps Higher To 0.6500

AUD/USD has recovered almost 50% of its intraday losses and is now trading near the 0.6500 handle. The comeback of AUD comes as the US Dollar is in the process of surrendering its intraday gains.

However, it's worth mentioning that the weakness in the US Dollar came after the currency refreshed its 2-year highs. Right now, the DXY is seen near the 108.00 handle and faces some selling pressure.

Us Dollar Under Selling Pressure Amid Profit-Taking

The overall trend of the US Dollar is still bullish as investors are hopeful that the Fed will slow down its policy easing. In turn, this will be helpful for the US Dollar in the FX market.

Many experts believe that the US economy will return back to growth once Trump takes office. The key elements of Trump's economic plan include lower taxes and higher tariffs.

If we look back at Friday's session, the key focus of the investors is now on the SP's PMI (November). The report is forecasted to show an expansion of the business activity.

Investors will also be watching how the firms will react to the rate cuts and thus will adjust their positions in the AUD/USD accordingly.

Meanwhile, the Russia-Ukraine conflict remains a drag and has improved the appeal of the US Dollar as a safe haven. The market's sentiment also remains weak as there is still no end to the conflict.

On the other hand, the JUDO Bank Composite PMI from Australia showed a contraction in November. The index has shown a decline in private business activity. The reading moved lower from 50.2 to around 49.4 during November, mainly due to the services sector's weakness.

As the markets open the week in green, it will be important to look for any opening gaps in the AUD/USD chart. A bullish gap will be a sign that the AUD has the upper hand against the USD.

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