AUD/USD holds above 0.6600 ahead of the US PMI, Fed’s Powell speech

• AUD/USD loses ground around 0.6605 amid the rebound of USD.
• US Core PCE fell by 3.5% YoY in October vs. 3.7% prior, in line with expectations.
• Australian Judo Bank Manufacturing PMI remained steady at 47.7 in November.
• Traders will focus on the US ISM Manufacturing PMI and Fed's Chair Powell speech.

The AUD/USD pair holds above the 0.6600 psychological mark during the early Asian session on Friday. However, the rebound of the US Dollar (USD) might cap the pair’s upside in the near term. Meanwhile, the US Dollar Index (DXY) surges to 103.50 while the US Treasury bond yield edge higher, with the 10-year Treasury yield standing at 4.328%. AUD/USD currently trades near 0.6605, down 0.03% on the day.

On Thursday, the US Core Personal Consumption Expenditure Price Index (PCE) fell by 3.5% YoY in October from 3.7% in the previous reading, in line with expectations. The weekly Jobless Claims totalled 218K while the Continuing Claims rose to the highest level since November 2021, rising to 1.927 million. The markets expect the conditions for rate cuts will emerge from the middle of 2024.

On the AUD’s front, the latest data on Friday revealed that the Australian Judo Bank Manufacturing PMI remained steady at 47.7 in November. Additionally, the weaker-than-expected Chinese data on Thursday weighed on market sentiment and dragged the China-proxy Australian Dollar (AUD) lower.

That being said, the Chinese NBS Manufacturing PMI for November dropped to 49.4 in November from 49.5 in October, worse than the market expectation of 49.7. The Non-Manufacturing PMI declined to 50.2 versus 50.6 prior, missing the estimated 51.1. However, the development surrounding the fresh stimulus measure from the Chinese government could benefit the AUD and cap the downside of the pair.

Moving on, traders will monitor the US ISM Manufacturing PMI for November, which is expected to grow to 47.6 from 46.7. Also, the Federal Reserve (Fed) Chair Jerome Powell and Fed's Goolsbee are set to speak. Market players will take cues from these events and find trading opportunities around the AUD/USD pair.