AUD/USD sees upside above 0.6650 as US Biden calls Republicans’ offer unacceptable

• AUD/USD is looking further upside above 0.6650 as US debt-ceiling negotiations have been postponed to Monday.
• US President Joe Biden called the partisan offer from House of Speaker Joseph McCarthy ‘unacceptable’.
• The PBoC is expected to remain dovish as the Chinese economy is on the path to economic recovery.

The AUD/USD pair is making efforts for climbing above the immediate resistance of 0.6650 in the early Asian session. The Aussie asset is expected to witness further upside above 0.6650 as investors are worried that the US debt ceiling raise issues are going through their worst phases.

S&P500 witnessed some sell-off on Friday after US President Joe Biden called the bipartisan offer from House of Speaker Joseph McCarthy ‘unacceptable’. Republican leaders demanded a wide wrath of 8% spending cuts against approval of a raise in the US borrowing cap. US President Joe Biden is ready to do an average cut of 22% in education and some law enforcement programs.

The overall market mood has turned shady and is biased now. US equities are expected to remain under pressure as fears of a default by the US Treasury are escalating. The Federal government won’t’ be able to make obligated payments on June 01, which will result in chaos in financial markets and a sharp spike in interest rates.

Meanwhile, the US Dollar Index (DXY) corrected sharply on Friday to near 103.00. Further uncertainty is widely anticipated as US debt-ceiling negotiations will be continued further on Monday as US Biden will be back from its G7 trip to Japan.

On the Australian Dollar front, investors are awaiting the interest rate decision by the People’s Bank of China (PBoC). The central bank is expected to remain dovish as the Chinese economy is on the path of economic recovery. It is worth noting that Australia is the leading trading partner of China and supporting monetary policy by the PBoC will also support the Australian Dollar.