- AUD/USD rebounds in tandem with risk, S&P 500 futures jump 0.50%.
- Strong Australian economic data fans aggressive RBA rate hike bets.
- US ADP jobs eyed for the next push higher in the aussie pair.
AUD/USD has staged an impressive comeback in the last hours, as bulls look to recapture the 0.7200 level ahead of the US ADP jobs report.
The latest upswing in the aussie could be mainly linked to the broad slippage in the US dollar, as risk-on flows return in European trading. The overnight slump in oil prices on a potential boost in production from Saudi Arabia and OPEC+ has helped calm investors’ nerves, as they reel from raging inflation.
The safe-haven dollar reversed sharply to near 102.20 versus its main peers after failing to find acceptance above 102.50. Meanwhile, the S&P 500 futures jump 0.50% on the day, reflecting the upbeat market mood.
The major also finds support from upbeat Australian employment and trade balance data, which fanned aggressive RBA rate hike expectations, boding well for the AUD. The Australian Trade Balance came in stronger at A$10.495 billion vs. an estimated A$9 billion.
In witnessing an upturn, the aussie reversed the Asian dip to the 0.7140 region, led by the renewed US-Sino concerns. Reuters reported on Wednesday, “US authorities are ready to implement a ban on imports from China's Xinjiang region when a law requiring it becomes enforceable later in June, citing a US Customs official.”
Looking ahead, the pair awaits the US ADP Employment Change data for fresh impetus, as an above-forecast print could revive the dollar’s demand while weighing negatively on the antipodean. The ADP figure is seen arriving at 300K in May vs. 247K reported previously. The US Factory Orders and the Wall Street sentiment will be also closely eyed for the aussie price action.