On Friday morning, the AUD/USD pair extends its decline below the mid-0.6300s during the early Asian session. The currency pair retreats from 0.6340 due to market prudence. AUD/USD is trading at approximately 0.6327, a daily loss of 0.02%.

In the future months, Fed Chair Jerome Powell has expressed a desire to observe the development of economic data before pausing further rate hikes. Powell added that additional monetary policy tightening could be warranted if additional indicators of above-trend growth materialise or if the labour market ceases to ease. His remarks substantially depreciated the USD and provided a tailwind for the AUD/USD pair.

The employment report indicated that the U.S. economy remains robust. For the week ending October 14, Initial Jobless Claims decreased to 198K, the lowest level since January. September saw existing home sales decline 2.0% YoY and 19% month-over-month, the lowest level since 2010. These numbers suggest that increased mortgage rates have an adverse effect on the confidence of the housing market.

The September Australian Unemployment Rate was reported at 3.6% on Thursday, falling short of expectations of 3.7% and the previous reading of 3.7%. In September, there was an Employment Change of 6.7K, which was lower than the consensus estimate of 20K and the 64.9K increase in jobs observed in August.

Furthermore, the escalating geopolitical tensions in the Middle East place significant strain on assets deemed more precarious, such as the Australian Dollar (AUD). Traders will closely monitor the remarks of US President Biden, as they may have an influence on the risk sentiment for the remainder of the day.

The United States has no high-priority economic data scheduled for release on Friday. Traders will increasingly rely on the guidance provided by Fed officials such as Logan, Mester, and Harker.

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