AUD/USD pops 0.75 the figure for fresh 2022 highs

• AUD/USD is taking on the 0.75 figure in midday New York.
• The US dollar is softer Fed's aggressive stance early this week fades.

AUD/USD is higher by 0.45% as it moves in on the 0.75 figure during New York trade.  The boost to the US dollar from US Federal Reserve's aggressive stance early this week faded and investors waited for President Joe Biden to unveil new sanctions against Russia during his trip to Europe.

Energy and commodity prices, in general, are strong which is giving the Aussie boost. However, US president Joe Biden, who heads to Brussels on Wednesday for talks with NATO and European leaders, will push Europe to reduce reliance on Russian oil and gas. Nevertheless, the European Union seems unlikely to agree to a ban on Russian oil.

Meanwhile, the release of stronger than expected February Australian labour data has ticked another box on the country’s journey towards tighter monetary policy.  At 4.0%, the February unemployment rate sank to a near 14 year low, while the employment change was double market expectations at 77.4K.  

The market is positioned for rates hikes from the RBA this year suggesting it may be hard for the Aussie to rally much further on hawkish commentary from their respective central bankers, analysts at Rabobank argued. ''That said, given the links of both currencies to commodity exports, we see the potential for both to edge a little higher vs the USD though the course of this year.'' Nevertheless, the analysts also noted that ''espite the signs that the RBA is edging towards a policy tightening, the RBA remains one of the most cautious central banks in the G10.''