Ella 
In early Asian trading on Friday, the AUD/USD extended its decline and fell below the mid-0.6300 level. Market sentiment turned cautious as AUD/USD retreated from the 0.6340 level. AUD/USD is currently trading at 0.6327, an intraday decline of 0.02%.
Federal Reserve Chairman Jerome Powell said that he hopes to pause rate hikes and monitor economic data in the coming months. Powell also said that if there are more signs that economic growth is above trend or that the labor market is no longer easing, then further monetary tightening may be appropriate. Powell’s comments dragged the U.S. dollar lower across the board and acted as a tailwind for AUD/USD gains.
U.S. employment data showed that the U.S. economy remains solid. Initial jobless claims fell to 198,000 in the week ended October 14, the lowest level since January. Existing home sales in September were at a monthly rate of -2.0% and an annual rate of -19%, the lowest level since 2010. The data suggests that rising mortgage costs are having a negative impact on housing market sentiment.
On Thursday, Australia’s unemployment rate was 3.6% in September, compared with expectations for 3.7% and the previous reading of 3.7%. The change in employment was 0,000 in September, below expectations for a change of 20,000 and the previous reading of 64,900.
In addition, escalating geopolitical tensions in the Middle East have also put pressure on risk assets such as the Australian dollar. Traders will be watching closely for a speech from U.S. President Joe Biden, which could have an impact on risk sentiment later in the day.
There are no major U.S. economic data releases on Friday. Traders will be looking for more clues from speeches by Fed officials including Logan, Mester, and Harker.
