Ella 
AUD/USD opened the Asian session slightly higher, having rebounded from a year-to-date (YTD) low of 0.6508 on Thursday amid mixed US economic data. At press time, AUD/USD was trading at 0.6572, up 0.01%.
Wall Street indexes closed higher after the Federal Reserve’s policy decision on Wednesday. Federal Reserve Chairman Jerome Powell and others have said they are ready to ease policy if deflation progresses. Asked about the possibility of a rate cut in March, Powell did not consider that option, spurring safe-haven flows.
Things are different on Thursday, however, as data from the U.S. could put the Fed at a crossroads. Labor market data was weak, with companies announcing more than 80,000 layoffs in January, according to the U.S. Challenger Report. That followed an increase of 224,000 in initial jobless claims for the week ended Jan. 27, beating expectations and the previous reading.
Beyond this, U.S. manufacturing activity improved, and although the ISM manufacturing purchasing managers’ index failed to break through the expansion/contraction threshold, it rose to 49.1 from 47.1, exceeding expectations. S&P Global showed the U.S. economy improved to 50.7 from 47.9 in December.
Against this backdrop, AUD/USD traders pulled the pair higher from below the 100-day moving average (DMA) of 0.6531.
During the next Asian session, Australia will release its producer price index (PPI) for the fourth quarter of 2023. In the United States, the U.S. Department of Labor will release its January non-farm payrolls report, which predicts the U.S. economy will add 155,000 jobs. Additionally, traders will also take a closer look at the University of Michigan Consumer Sentiment Index.
