The AUD/USD pair remains on the defensive during the early Asian session on Friday. The pair faces some follow-through selling after the Federal Reserve (Fed) decided to hold the interest rate on Wednesday but expected at least one more rate hike for the year. The pair The pair currently trades near 0.6415, losing 0.02% on the day.
Data from the US economic data showed mixed results on Thursday, with the weekly Initial Jobless Claims dropping to 201K, the lowest level since January. Meanwhile, the Philly Fed dropped to -13.5 in September from 12.0 in the previous reading, worse than expected at -0.7. Existing Home Sales fell to 4.04M MoM in August from the previous reading of 4.07M.
The Federal Reserve (Fed) held interest rates unchanged at the 5.25-5.50% range on Wednesday, as widely predicted in the market. Fed Chairman Jerome Powell reaffirmed the Fed's commitment to achieving 2% inflation in a press conference while mentioning that the Fed is ready to raise rates if necessary. These hawkish remarks boost the Greenback against the Swiss Franc and act as a headwind for the AUD/USD pair.
On the other hand, the recent data from Australia revealed on Friday that the preliminary S&P Global Services PMI posted 50.5 in September, improved from 47.8 in August. While the Manufacturing PMI dropped to 48.2 from 49.6 in the previous reading. The Composite Index was also improved from 48.0 to 50.2.
Looking ahead, market participants will closely monitor the preliminary US S&P Global/CIPS PMI data for September. Traders will take cues from these figures and find trading opportunities around the AUD/USD pair.
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