Aussie dips near 0.6280 amid trade gloom,RBA likely to cut rates to 4.1%, capping Aussie gains.
Markets await US labor data for fresh momentum,Soft Trade Balance data from Australia also affected the Aussie.
The Australian Dollar (AUD) softens to around 0.6280 in Thursday's American session, tallying nearly 0.30% losses. Expectations of a Reserve Bank of Australia (RBA) rate cut and revived United States (US)-China tariff anxieties hamper the pair's upside. Meanwhile, attention shifts to the United States labor market report on Friday, with the Aussie bracing for further volatility.
On the local front, Australia's trade surplus shrank to 5,085M in December from 6,792M, below expectations of 7,000M, as exports rose just 1.1% while imports surged 5.9%.
Markets now price a 95% chance of an RBA rate cut from 4.35% to 4.10%, undermining the Aussie's resilience.
US President Donald Trump floats the idea of higher tariffs on the Eurozone and China, pressuring the China-linked Australian Dollar.
The US Dollar finds support from hawkish Federal Reserve expectations, although weaker labor data could curb USD demand.
Investors are now focusing on Friday's Nonfarm Payrolls report, projected to show 170,000 new jobs in January, down from December's 256,000.
Jobless Claims raised concerns as Initial claims rose to 219,000, surpassing expectations of 213,000 and up from last week's 208,000, signaling potential labor market softening.
Continuing jobless claims increase to 1.886 million, above the forecast of 1.87 million.(Cay) Newsmaker23
Source: Fxstreet
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