AUD/USD sees cushion at 0.6990, investors await Aussie Employment data

• AUD/USD oscillates around 0.7000 as the focus shifts to aussie job data.
• The Aussie Unemployment Rate may improve to 3.9% vs. 4%, prior release.
• Inflationary pressures are compelling the Fed to announce two more 50 bps interest rate hikes in 2022.

The AUD/USD pair has experienced a correction in the early Asian session as the risk-on impulse loses strength. The major is expecting a rebound from its crucial support at 0.6990 amid a light calendar week for the greenback bulls.

The US dollar index (DXY) has witnessed a minor rebound in early Tokyo after a bearish Tuesday. The DXY has eased around 1.5% after hitting a fresh 19-year high of 105.00 last week. Vigorously advancing odds of a 50 basis point (bps) interest rate hike by the Federal Reserve (Fed) are failing to support the greenback bulls.

The Fed is focusing on bringing price stability to its economy sooner as soaring inflation is hurting the paychecks of the households.  It won’t be a surprise if the Fed feature two more jumbo rate hikes in this calendar year.

On the Aussie front, investors are still in a fix of unexpected hawkish Reserve Bank of Australia (RBA). The release of the RBA minutes on Tuesday dictated that the option of elevating interest rates by 40 bps was also into consideration. This indicates that the RBA has started advancing its interest rate curve from its rock-bottom levels. This week the major event for the aussie bulls is the release of the Employment data.  The Australian Bureau of Statistics is expected to report job additions in the total labor force at 30k, higher than the prior print of 17.5k. Also, the Unemployment Rate may improve to 3.9% against the former number of 4%.