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Australian Dollar hovers around 0.6500 on USD flatness

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  • Aussie bears lick their wounds after retreating due to soft US Dollar and broad risk-on mood.
  • The hawkish RBA, less dovish Fed expectations and the US political transition continue to influence AUD/USD price action.
  • Mixed US data seems to have weakened the Greenback on Thursday.

The AUD/USD regained positive traction on Thursday following the overnight pullback from a one-week top. A softer US Dollar and a positive risk tone benefited the Aussie, as well as the Reserve Bank of Australia’s (RBA) hawkish stance. Traders look forward to US macro data and Federal Reserve (Fed) speakers for some meaningful opportunities.

This week, the AUD/USD is facing a bearish trend due to a stronger US Dollar supported by geopolitical concerns and higher bond yields. The RBA's hawkish stance, indicating potential interest rate adjustments, provides temporary support for the Aussie. However, weak Australian and Chinese economic data, along with the Fed's reluctance to cut interest rates quickly, continues to weigh on the AUD/USD pair.


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