- AUD/USD extended its daily decline in the American session.
- ADP reported a larger than expected increase in private sector employment in September.
- Wall Street’s major indices remain on track to open in negative territory.
The AUD/USD came under further downward pressure and fell to a fresh daily low below 0.6440, before recovering modestly in the early hours of the American session on Wednesday. At the time of writing, the pair lost 0.75% on the day, trading at 0.6452.
The dollar takes advantage of the positive data from ADP
Data released by Automatic Data Processing (ADP) revealed that US private sector employment increased by 208,000 people in September, against market expectations of 200,000. Also, the data for August was revised up to 185,000 from 132,000. On the back of positive jobs data, the Dollar Index extended its rally and was last up 0.75% on the day to hit 111.05.
Meanwhile, safe haven flows continue to dominate the financial markets and put additional weight on the shoulders of AUD/USD in the second half of the day.
Wall Street’s major indices remain on track to open in negative territory, with US stock index futures shedding 0.95-1.1% on the day, suggesting safe-haven flows are likely to continue to dominate market action. .
Later in the session, the ISM will release the services PMI survey for September. Atlanta Fed President Raphael Bostic is scheduled to speak at a virtual conference titled “Staying Resolute in the Battle Against Inflation.”
Technical levels to consider
Source: Fx Street
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