Australian Dollar consolidates above 0.6900/multi-month low vs USD ahead of Fed's Warsh
The AUD/USD pair struggles to capitalize on the previous day's modest bounce from sub-0.6900 levels, or the lowest since early July, oscillating in a range during the Asian session on Friday.
The Australian Dollar (AUD) finds itself trading above the 0.6900 level, a multi-month low, as it awaits the Federal Reserve Chair Kevin Warsh's speech at the International Monetary Fund and World Bank Group Annual Meetings in Bangkok. The pair is currently hovering around the 0.6920-0.6925 range, with traders looking to US Federal Reserve policy cues amid a surge in US inflation driven by energy prices.
With a strong likelihood of a December Fed rate hike, the US Dollar (USD) dynamics are expected to provide fresh impetus to the AUD/USD pair. Meanwhile, the geopolitical risk premium remains high due to the recent missile attack on the Yemeni government's interim capital by Iran-backed Houthi group. The Australian Dollar, however, faces challenges as the Reserve Bank of Australia's interest rate hike expectations wane amid a cooling domestic jobs market.
Despite this, the AUD/USD pair shows a bearish near-term bias, with any upside likely to be capped and limited. The price remains below the 0.6991 resistance zone, making it favorable to sell into strength if the pair trades below 0.6900.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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