AUD/USD gains against US Dollar on Fed race cut speculation, mixed data

• AUD/USD edges up, buoyed by Fed’s rate talk and mixed US data.
• Fed’s data-focused rate policy, strong US job market, and services data are headwinds for the US Dollar.
• Australia’s services sector gains boost AUD amid global economic uncertainties.

The Aussie Dollar posted solid gains against the US Dollar on Wednesday, boosted by falling US Treasury yields and a soft US Dollar. Federal Reserve policymakers grabbed the headlines, while US economic data was mixed, with a strong ADP report but softer PMIs. The AUD/USD trades at 0.6565, posting minimal gains of 0.02% early during Thursday’s Asian session.

AUD/USD sees slight uptick as dovish Federal Reserve remarks and uneven US data fuel optimism in Forex markets

On Wednesday, the market was attentive to the remarks of Fed Chair Jerome Powell, who reiterated the US central bank’s readiness to cut rates, albeit with a data-dependent approach. Atlanta Fed President Raphael Bostic’s statement, supporting a rate cut in the last quarter of 2024, also drew significant attention.