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AUD/USD Remains Struggles Amid Stronger USD

The AUD/USD Pair Remains Under Pressure And Struggles To Sustain Its Overnight Rebound From The 0.6270 Area. Despite Attempting A Recovery, It Fails To Break Above The 0.6300 Level. This Downward Trend Continues As The US Dollar (USD) Strengthens, Driven By Renewed Market Demand.

Stronger US Dollar Limits AUD/USD Gains

The Federal Reserve (Fed) Recently Reaffirmed Its Forecast For Two 25 Basis Points Rate Cuts In 2025. Alongside This, The Fed Raised Its inflation Projection, Supporting The USD’s Rebound From A Multi-month Low. Additionally, Concerns Over Potential Economic Fallout From Donald Trump’s Trade Tariffs And Rising geopolitical Risks Are Increasing The Demand For The Safe-haven USD. As A Result, The AUD/USD Pair Remains On The Defensive.

Weak Australian Labor Market Adds To Pressure

The Australian Dollar (AUD) Faces Further Challenges Following A Disappointing employment Report. Data Released On Thursday Showed That The Number Of Employed People Dropped By 52.8K In February, Far Below The Expected Increase Of 30.0K. This Weak Labor Market Fuels Speculation That The Reserve Bank Of Australia (RBA) May Cut Interest Rates, Further Weighing On The AUD.

Limited Downside For AUD/USD Amid Trade Hopes

Despite The Downward Pressure, The AUD/USD Pair’s Losses May Be Contained. Market Expectations Suggest That The Federal Reserve Could Resume Its rate-cutting Cycle Sooner Than Expected Due To Concerns Over Trade-related Economic Slowdowns. Additionally, China’s Recent Stimulus Measures And Potential US-China Trade Negotiations Could Support The AUD. Notably, US Senator Steve Daines Is Set To Visit China For Discussions, Marking A Significant Step Toward Resuming Trade Talks.

Focus Shifts To Key US Data Releases

As The Week Ends, Traders Will Closely Watch Speeches From Influential FOMC Members For New Insights Into monetary Policy. Additionally, The Upcoming flash Global PMIs On Monday Will Provide A Broader Economic Outlook, Potentially Influencing AUD/USD Movements. Despite Short-term Trading Opportunities, The AUD/USD Pair Remains Struggles For Its First Weekly Decline In Three Weeks.

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