AUD/USD Bounces Back To Near 0.6500 As USD Gives Up Majority Of Gains

The AUD/USD pair recovers more than half of its intraday losses and rebounds to near the psychological figure of 0.6500 in Friday’s European session. The Aussie pair bounces back as the US Dollar (USD) surrenders a majority of its intraday gains after refreshing two-year high. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, gives up gains after facing selling pressure near 108.00 but still holds higher.The bullish trend in the US Dollar remains intact as investors expect the current policy-easing cycle of the Federal Reserve (Fed) will be shallower than what market participants had anticipated earlier. Market experts believe that price pressures and economic growth in the United States (US) economy could accelerate when President-elect Donald Trump will take the office. Trump mentioned, in his election campaign, that he will raise import tariffs and lower taxes.In Friday’s session, investors will focus on the flash S&P Global Purchasing Managers’ Index (PMI) data for November, which will be published at 14:45 GMT. The report is expected to show that the overall business activity expanded at a faster pace. Investors will also pay close attention to how businesses are reacting to rate cuts and Trump’s victory.Meanwhile, a fresh escalation in Russia-Ukraine war has also improved the US Dollar’s appeal as safe-haven. Russia launched intercontinental ballistic missiles on Ukraine in response to their attack over the week by the United Kingdom (UK) and the US-supplied missiles. This has dampened market sentiment significantly.In the Australian region, flash JUDO Bank Composite PMI surprisingly contracted in November. The index showing overall private business activity declined to 49.4 from 50.2 in October due to weakness in the services sector. A figure below the 50.0 threshold is considered as contraction in economic activities.More By This Author:Pound Sterling Weakens As UK Retail Sales Contract At Faster-Than-Expected Pace USD/CAD Holds Key Support Of 1.3950 As Us Dollar Resumes Upside EUR/USD Stays Under Pressure As ECB Officials Support More Rate Cuts