AUD/USD faces resistance above 0.6700 as USD Index attempts recovery, US CPI in focus

• AUD/USD has sensed barricades while attempting sustainability above 0.6700.
• The risk profile is showing minor caution in an overall upbeat market mood.
• Easing US labor market conditions might provide the luxury of keeping rates steady to the Fed.

The AUD/USD pair has sensed some selling pressure above the round-level resistance of 0.6700 in the Asian session. The Aussie asset is struggling in maintaining an auction above the aforementioned resistance as the US Dollar Index (DXY) has attempted a recovery from near the crucial support of 103.30.

S&P500 futures are showing some losses in the Asian session after a positive Thursday. The risk profile is showing minor caution in an overall upbeat market mood. Investors are taking caution as the street is shifting focus toward the United States Consumer Price Index (CPI) (May) data, which will release on Tuesday.

The USD Index showed a nosedive move on Thursday after the US Department of Labor showed 19-month high weekly Initial Jobless Claims for the week ending June 02. Unemployed claims rose by 28K to 261K while the street was expecting a minor increase of 2K. Higher jobless claims have eased heated labor market conditions, which were forcing Federal Reserve (Fed) policymakers for delivering hawkish guidance. Mammoth jobless claims could provide luxury to Fed chair Jerome Powell of keeping interest rates steady in June.

The demand for US government bonds has dropped slightly which has provided an intermediate cushion to the US Treasury yields. The yields offered on 10-year US Treasury bonds have jumped to near 3.73%.

On the Australian Dollar front, after seeing evidence of persistence in Australian inflation, investors are anticipating that the Reserve Bank of Australia (RBA) will continue raising interest rates further. A poll from Reuters showed that RBA Governor Philip Lowe would raise its Official Cash Rate (OCR) further by 25 basis points (bps) to 4.35%.

Meanwhile, the commentary came from Australian Prime Minister Anthony Albanese in which he said there is no wage-price spiral in the country. He further added, "There isn't one and there hasn't been one for a long period of time.”