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In the Asian session, the AUD / USD pair is exhibiting a back-and-forth pattern below the round-level resistance of 0.6600. The Australian asset appears vulnerable at the same time that the risk-aversion theme has been solidified by intensifying concerns of a recession in the United States and expectations of higher rates from the Federal Reserve (Fed).

After a shaky recovery move, S&P500 futures are showing nominal losses. It seems that the dead cat recovery move by the 500-US stocks basket is tapering away. The US Dollar Index (DXY) has turned sideways above 105.20 after a modest correction, however, the upside appears favored amid upbeat United States Employment data.

The solid addition of fresh payrolls in the US labor market in February due to rising demand has confirmed that concerns of stubborn inflation among Fed policymakers were genuine. The US Automatic Data Processing (ADP) reported an increase of 242K positions in February, exceeding both the anticipated increase of 200K and the previous release of 119K. As a result, Fed Chair Jerome Powell stated, "The Fed is prepared to announce more rates to reduce inflation."

The US Nonfarm Payrolls (NFP) data, which will be released on Friday, will provide investors with greater insight into the state of the US labor market. In addition, the publication of the Unemployment Rate and Average Hourly Wages will be of the uttermost importance.

Following the Reserve Bank of Australia's (RBA) fifth consecutive 25 basis point (bps) rate hike and RBA Governor Philip Lowe's contemplation of a policy-tightening halt in response to a one-time blip in the monthly Consumer Price Index (CPI), the Australian Dollar has been under intense pressure.

Investors are now focusing on China's Consumer Price Index (CPI) (February) data. China's annual CPI is anticipated to fall to 1.9% from the previous release of 2.1%. China's CPI has been reduced to 0.2% on a monthly basis, down from 0.8% previously. The Chinese government and the People's Bank of China (PBOC) may be compelled to inject more liquidity into the economy if inflation falls.

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