AUD/USD retreats following upbeat US data

The Australian dollar’s recovery is losing momentum, as US data beats expectations. US Factory Orders and JOLTS Job Openings endorse the view of a robust economy in the United States with a tight labour market. The AUD/USD pair is up 0.31%, trading at 0.6509 at the time of writing.

Cleveland Fed President, Loreta Mester hints at rate cuts in 2024 but she does not say when. The Australian Dollar bounced up from the 0.6480 support area on Tuesday. Bulls, however, are struggling to find a significant acceptance above the 0.6500 area, which keeps the broader bearish trend intact.

On the US data front, fresh data from the Census Bureau reported a larger-than-expected recovery in Factory Orders, which confirms the strong momentum of the manufacturing sector, following Tuesday’s bright ISM PMI report.

Beyond that, the US JOLTS Job Openings increased beyond expectations in February. These data have contributed to endorse the view of a strong economy with a tight labour market, which poses a challenge to the Fed’s easing plans.

Cleveland Fed President, Loreta Mester, has calmed markets somewhat, hinting at rate cuts later this year but she added that the bank might need more time to confirm that inflation is on its way to the 2% target. Later today, San Francisco Fed CEO, Mary Daly, a moderate hawk, might give some more insight into the bank’s rate outlook.