In Wednesday's Asian session, the Australian Dollar against the US Dollar (AUD/USD) is testing the 0.6250 barrier, as market participants closely watch global economic indicators. The pair is flirting with intraday lows, influenced by a complex interplay of economic data and geopolitical tensions. Notably, impressive Australian Q4 GDP figures have caught the market's attention, while China's February Caixin Services PMI data offers additional insights. However, the risk-sensitive Aussie faces pressure due to ongoing US-Sino trade war fears.
The Japanese Yen experiences high demand, reflecting heightened risk aversion among investors. This sentiment has led to USD/JPY paring early gains to trade near 150.00 in Asian trading. The haven demand for the Japanese Yen weighs down the pair, as uncertainty regarding tariffs imposed by former US President Trump on Canada and Mexico continues to roil markets. Meanwhile, Gold prices are consolidating a two-day upswing above $2,900, as buyers pause ahead of the crucial US ADP employment data.
Market analysts anticipate that the upcoming US ADP employment data could provide fresh clues about the Federal Reserve's next interest rate move. As such, traders remain cautious, adjusting their positions accordingly. It is important to note that this article does not serve as investment advice; rather, it reflects the author's views and opinions, which are independent of FXStreet and its advertisers.