**The Australian Dollar Rises Against the US Dollar Amid Greenback Weakness**
*Adapted and expanded from the article by VT Markets Live Updates.*
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## Overview
During the European trading session on June 10, 2024, the Australian Dollar (AUD) advanced against the US Dollar (USD), with the AUD/USD currency pair climbing to around 0.6505. This movement was largely attributed to a decline in the strength of the US Dollar. Traders and analysts closely monitored economic events and data releases from both Australia and the United States, which influenced the currency pair’s direction.
Below is a detailed analysis of the recent AUD/USD movement, the underlying economic factors, and what market participants may expect in the coming days.
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## Key Highlights
– **AUD/USD climbed to approximately 0.6505 during European trading hours**
– **The US Dollar index (DXY) weakened amid lower US Treasury yields and cautious trader sentiment**
– **Investors shifted focus to the US Federal Reserve’s upcoming policy meeting and recent US employment data**
– **Market participants continue to respond to a mix of domestic Australian data and global financial trends**
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## Detailed Market Analysis
### 1. Recent Performance of AUD/USD
The Australian Dollar began to appreciate against the US Dollar during early European trading hours, driven by a softening Greenback. As the AUD/USD reached about 0.6505, traders noted several factors contributing to this movement:
– Lower US Treasury yields
– Absence of strong US macroeconomic data
– Persistent risk-on sentiment in equity markets
#### Technical Analysis
According to technical analysts, the pair’s ability to hold above the 0.6500 psychological level demonstrated resilience. Key support and resistance levels were identified:
– **Support:** 0.6460, 0.6420
– **Resistance:** 0.6520, 0.6545
A break above resistance could further solidify bullish momentum, while a downturn below support may expose the AUD to further losses.
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### 2. Forces Behind the US Dollar’s Weakness
Several developments in the United States weighed on the US Dollar:
#### a. Lower US Treasury Yields
– US 10-year Treasury yields declined, reducing demand for the USD as a safe-haven asset.
– The bond market responded to softer-than-expected economic data and hopes for possible rate cuts by the Federal Reserve in the second half of the year.
#### b. Mixed US Labor Market Data
Recent US jobs reports, including the Non-Farm Payrolls, presented mixed signals:
– Headline job gains surpassed expectations, but wage growth progress remained limited.
– The unemployment rate ticked higher, undermining the labor market’s perceived robustness.
– These factors collectively increased speculation that the Federal Reserve could consider a dovish shift sooner than previously forecast.
#### c. Fed Policy Expectations
– The Federal Open Market Committee is scheduled to meet on June 12, 2024. Market
Read more on AUD/USD trading.