AUD/USD consolidates around 0.6740, with attention on Fed speeches

• The AUD/USD pair will end the week with a solid gain of 0.28%.
• The ISM Services PMI for the US was one notch lower than the previous month’s data, a sign of the strength of the US economy.
• AUD/USD traders will be watching for speeches from the Federal Reserve throughout the day.

He AUD/USD it jumped from near weekly lows below 0.6700 and rose 0.44% on Friday. Factors such as risk-on momentum and US dollar (USD) supply keep the Australian dollar (AUD) in positive territory during the day. At the time of writing, AUD/USD is trading at 0.6745.

AUD/USD advances towards 0.6750

Sentiment remains upbeat, a headwind for the safety of the US dollar. The US ISM Non-Manufacturing PMI for February came in at 55.1, down slightly from the previous month’s 55.2. However, it beat expectations of 54.5, indicating that business activity remains strong. The Prices Paid Index sub-component, used by investors looking for inflationary pressures, rose to 65.6, above estimates of 64.5. Although it was lower than that of January, the Consumer Price Index (CPI) for February was above forecasts. Although it was down from 67.8 in January, the data will keep traders watching for interventions from Federal Reserve (Fed) officials throughout the day.

Speakers from the US Federal Reserve (Fed) highlighted the importance of tackling inflation towards the 2% target. On Thursday, Fed Governor Christopher Waller commented that inflation was not subsiding as expected and signaled his willingness to raise rates if price pressures do not ease.

After the Publication, the dollar weakened and the Dollar Index recovered from its daily lows and reached 104,924 points. As of this writing, it resumed its downtrend at 104.848, down 0.11%.

The AUD/USD pair rallied after falling towards 0.6732 and advanced towards 0.6760 before settling around current exchange rates.

On the Australian side, the S&P Global Services PMI beat estimates, while the S&P Global Composite PMI came in at 50.6, up from 49.2 in January, a sign that the Australian economy is doing much better than expected.

In addition, the Caixin services PMI in China improved to 55, versus 50.5 consensus, and grew at the fastest pace in six months in February, as the removal of tough COVID-19 restrictions revived customer demand. , fueling a solid increase in employment, a private sector survey showed on Friday.

Must to see?

Fed members will deliver remarks led by Dallas Fed President Lorie Logan, Atlanta Fed President Raphael Bostic, Fed Governor Michell Bowman, and Richmond Fed President Thomas Barkin.

AUD/USD Technical Levels