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Explore in-depth USD\/JPY trade setups and expert forecasts here<\/a>.<\/p>\n For the Australian dollar, the S&P Global Australian Services PMI spotlit the AUD\/USD<\/a> early in the February 5 session. Accounting for over 70% of Australia\u2019s GDP, January\u2019s PMI data could bolster the case for a February RBA rate cut.<\/p>\n The PMI rose from 50.8 in December to 51.2 in January, up from a preliminary 50.4.<\/p>\n Beyond the headline PMI, employment and price trends tested expectations of a more dovish RBA rate path. Firms cut increased staffing levels, with input price inflation accelerating, dampening bets on multiple H1 2025 RBA rate cuts.<\/p>\n Jingyi Pan, Economist Associate Director at S&P Global Market Intelligence, previously commented on price trends:<\/p>\n \u201cNot only have rising prices dampened sales thus far according to anecdotal evidence, the potential to keep interest rates elevated for longer also poses a threat to the outlook for growth in 2025.\u201d<\/p>\n<\/blockquote>\n For a comprehensive analysis of AUD\/USD trends and trade data insights, visit our detailed reports here<\/a>.<\/p>\n Turning to the US session, stronger services sector activity, labor market, and higher prices could impact the US-Aussie interest rate differential. Falling Fed rate cut bets would widen the gap in favor of the US dollar. A more hawkish Fed policy stance could drag the AUD\/USD pair below $0.61500 toward the upper band of the descending channel.<\/p>\n Conversely, softer employment and price trends could narrow the interest rate differential, favoring the Aussie dollar. The AUD\/USD could move toward $0.63 and the 50-day EMA on a more dovish Fed rate path.<\/p>\n Additionally, US-China tariff developments remain a risk factor. The Aussie dollar may face selling pressure if the US and China fail to reach a trade agreement.<\/p>\nThe AUD\/USD: Services PMIs and Tariffs Crucial for Aussie Dollar Demand<\/h2>\n
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Australian Dollar Daily Chart<\/h2>\n