AUD/USD slips down to 0.6300

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The AUD/USD pair was last seen at 0.6300 following the prevailing risk in the global market. The three factors causing worry are:-

• The employment numbers are yet to be reported.
• The chance of the Fed to hike the rate.
• China’s covid incidents.

Australia’s employment change is estimated to soften to 25k compared to 33.5k. The unemployment rate, however, could go unchanged, standing firm at 3.5%.

AUD/USD prices flee the heat, with every factor taking time to roll out the details. While the employment numbers will be out soon, it is also the ride that the Fed has chosen to take a seat on. There is a 95% chance, according to CME’s FedWatch Tool, that the Fed will further shoot up the rate by 75 basis points. An announcement is due in November, and October is already beginning to climb the ladder. Economies around the globe are drafting their pointers for every possible scenario, and Australia is no stranger to the condition.

The United States of America has reported good numbers, though, with an increase in Industrial Production by around 0.4% month-over-month. However, as per the early estimations, the change could stick at 0.1%. The NAHB Housing Market Index recorded a dropping number, though. Initially, 43 was expected, but the landing touched the ground with 38. Experts believe that anything above 50 is a greener outlook.

Neel Kashkari, the President of the Minneapolis Federal Reserve Bank, said that they were not ready to halt the rate hike until there was concrete evidence of inflation reaching its peak. Every Australia FX broker is likely waiting to hear good numbers from every point of the world. Sellers may lack having a blast until the situation improves for AUD/USD. The market is rushing to a sweet spot, probably away from China, where the Covid incidents are refusing to take a break. Inflation data represents unimpressive numbers, and any type of relief is more than welcome for the visitors. The United Kingdom is looking to get hold of its rising prices, but a few u-turns have already put the government on the testing floor.

The United States of America sees the addition of 6 basis points in its 10-year Treasury Yield, which is near 4.06%. Its bond coupons are at the 14-year high, waiting for the implementation of any effective measure. Adding fuel to the whole situation is the situation between Russia and Ukraine. It has affected the politics in the UK for additional downside pressure on the market. However, no country has been spared from the effects of the situation, and everyone is attempting to find comfort at the earliest.