AUD/USD eyes more downside below 0.6530 as US debt-ceiling issues still remain uncertain

• AUD/USD is likely to discover more losses below 0.6530 amid further delay in US debt-ceiling issues.
• Fed Bostic favored that the central bank should not consider interest rate cuts in 2024 too.
• The RBA has started to unwind its pandemic bond purchases as around $20 billion of purchased bonds have matured.

The AUD/USD pair found intermediate support after a vertical fall to near 0.6530 in the early Tokyo session. An absence of recovery in the Aussie asset after gauging a support indicates lack of strength in the Australian Dollar, which advocates further decline ahead.

S&P500 futures have trimmed some gains added in early Asia. The overall market mood is extremely cautious as US debt-ceiling issues are taking more time than thought. Mixed views on US borrowing cap from think tanks are baffling investors.

Fitch Ratings have cited that chances are greater that the debt ceiling will not be raised or suspended. While, managing director of the International Monetary Fund (IMF) Kristalina Georgieva said on Wednesday she was confident the United States would avoid a debt default, as reported by Reuters.

The US Dollar Index (DXY) is looking to refresh its two-month high further after reclaiming the 104.00 resistance as US debt-ceiling issues are still in progress.

Meanwhile, Atlanta Federal Reserve (Fed) President Raphael Bostic has advocated that the central bank should remain data-specific for June’s monetary policy meeting. He further added that no consideration of an interest rate cut well in 2024 would be the best-case scenario.

Going forward, Friday’s US Durable Goods Orders (April) data will remain in the spotlight. The economic data is seen contracting by 1.0% vs. an expansion of 3.2%. An occurrence of the same might ease inflationary pressures ahead.

The Australian Dollar has lost traction against the US Dollar as investors are anticipating a steady interest rate policy by the Reserve Bank of Australia (RBA) for the June meeting. Meanwhile, David Jacobs, head of domestic markets at the Reserve Bank of Australia (RBA), said on Wednesday, he expects the balance sheet unwinding process to run smoothly, though are attentive to the challenges involved. He further added, “Its balance sheet starting to unwind pandemic bond purchases; around $20 billion of purchased bonds have matured.”