AUDUSD: Market analysis strategy on I chart today

5 Oca

The Australian Dollar (AUD) tries to end a losing streak on Friday. The AUD/USD pair is facing bearish pressure, even as the US Dollar (USD) lacks clear direction and China's Caixin Services PMI improved in December. Market Sentiment Weakness and widespread commodity price declines have both played a role in the Australian Dollar's weakness. Australia's Judo Bank's latest Purchasing Managers' Index (PMI) data shows a decline in business activity across both the services and manufacturing sectors, further highlighting vulnerabilities of the Australian Dollar. The Services PMI specifically showed the fastest contraction in the services sector since the third quarter of 2021. However, Matthew De Pasquale, Economist at Judo Bank, suggested that a slowdown in the economy Australia has not yet gained momentum. The US Dollar Index (DXY) holds a steady trend, showing a slight tilt towards positive sentiment and potential profits. However, a pullback of recent advances in United States (US) Treasury yields could put some pressure on the Greenback. Furthermore, upbeat jobs data released on Thursday could strengthen support for the US Dollar.