AUD/USD returns below 0.6800 as Fed large rate cut bets wane.
US economic slowdown risks have been shrunk by the upbeat US NFP for September.
Dismal market sentiment weighs heavily on the Australian Dollar.
The AUD/USD pair retreats after a short-lived pullback move slightly above the crucial resistance of 0.6800 in Monday’s European session. The Aussie asset continues its losing streak as the US Dollar (USD) gains further after the upbeat United States (US) employment data for September forced traders to unwind Federal Reserve (Fed) large rate cuts bets for the upcoming policy meeting in November.
Market participants expect the Fed to cut interest rates further by 25 basis points (bps) to 4.50%-4.75% in November after the US job report pointed a sharp increase in the number of payrolls and a stronger-than-expected wage growth. Before the US Nonfarm Payrolls (NFP) data release, financial markets were anticipating the Fed to continue with the larger-than-usual interest rate cut of 50 bps.
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