Audusd Turning Higher Amid Usd Selling

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Audusd Turning Higher Amid Usd Selling

AUD/USD Heading To 0.64 Amid Greenback Selling

AUD/USD continues to march higher after conquering the 0.6368 level, which also happens to be an important resistance. Now, the AUD/USD is targeting 0.6400, which is a round figure resistance & an important milestone for the bulls.

Given the recent price action of the DXY, it makes sense for the AUD/USD to take advantage of the situation. The US Dollar index failed to find a strong footing after crossing the 106.7 level, which has led to the upward momentum for the AUD.

No More Rate Hikes From The Fed

On the US side, the S&P 500 index is also bullish on the hopes that the Fed is finally finished with the rate hikes. Furthermore, the analysts are also hinting at a more neutral tone from the Fed officials.

As far as the US stock markets are concerned, the stance of no rate hikes will be a welcoming development. At the same time, it will raise optimism that the Fed will now move toward the rate cuts sometime later in 2024.

As for why the Fed will not change its policy, experts point to the higher yields of the US bonds. With a 4.89% yield on the 10Y bond, the investors are hopeful that interest rates will not go any higher from here.

The DXY is now trading close to 106.28 with a focus on the upcoming ADP data from the USA. In addition, the PMI data for the manufacturing sector is also due in the next few days.

On the other side, the PMI Data from Australia is also due for the month of October. According to the forecast, the value for this month will be 50.8 against the 50.6 of last month.

While we discuss the Australian Dollar, it is also important to look at China, which is a key trading partner of Australia. So, any positive news coming from the Chinese side will also favor the Australian Dollar.

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