- Risk appetite sentiment surrounds financial markets, but Aussie dollar resistance remains.
- US President Joe Biden agreed to push for a deal in a meeting with lawmakers.
- Australian CPI figures rose more than expected, lifting AUD/USD towards daily highs at 0.7535.
- US durable goods orders contracted less than expected, minimizing the impact on the US dollar.
AUD/USD is up during the U.S. session, rising 0.17% and trading at 0.7513 at the time of writing. Market sentiment was bearish during the European session, which benefited safe-haven currencies such as the USD. However, the risk-sensitive AUD maintained its gains, sitting comfortably around 0.7510.
US stock indices lost gains earlier this week, with the exception of the tech-heavy Nasdaq Composite, which gained 0.47 percent. As one of the factors, the U.S. spending bill is back on the radar, while commodity prices are down a bit.
According to news reports, US President Joe Biden agreed to push for a deal as soon as possible in a meeting with lawmakers. Additionally, United States Senate Finance Committee Chairman Ron Wyden announced that unrealized gains on billionaires’ assets would be taxed at 23.8%.
Mixed US economic data caused the US dollar index to swing between gains and losses.
In the Asian session, the Australian economic docket released inflation figures. The RBA’s trimmed consumer price index for the third quarter expanded by 0.7% higher than the 0.5% estimate. While the headline consumer price index rose by 0.8%, in line with the forecast and second-quarter figures. AUD/USD reacted positively to the news, reaching a daily high at 0.7535, ahead of the U.S. figures.
U.S. economic data showed that overall durable goods orders came in at -0.4%. Better than the -1.1% expected, but down from 1.3% in August. Capital goods orders excluding aircraft, on the other hand, rose 0.8%, higher than the 0.5% estimated and printed earlier.
USD fell 0.14% at the close of trading, supported by falling US Treasury yields, with the 10-year yield down four basis points to 1.575%.
That said, AUD/USD traders would depend on market sentiment. Along with US dollar dynamics, as attention turns to the Federal Reserve meeting on November 2-3. As November begins, investors will pay close attention to spending bills and fiscal policy developments, as market sentiment spikes, reducing Democrats’ maneuvering time.