AUD/USD SOARS AS POWELL SIGNAL CUTS, EYES ON US NFP

• AUD/USD climbs above 0.6600, rallying 0.82% after Powell hints at upcoming Fed rate adjustments.
• ECB's resistance to early easing contrasts with Powell's openness to rate cuts based on inflation trends.
• US labor market shows resilience with steady unemployment claims; trade deficit widens more than expected.

The Australian Dollar rallied against the US Dollar in late trading on Thursday after Fed Chair Jerome Powell's second day of testimony before the US Congress. The AUD/USD trades above the 0.6600 figure, posting gains of 0.82% as investors look for the Fed’s first rate cut.

AUD/USD strengthens amid Fed’s rate cut speculations

The financial markets' narrative revolves around when the major central banks will cut rates. On Thursday, the European Central Bank (ECB) pushed back against easing in April, sticking to its data dependence and noted that it would have more data to assess the appropriate restrictiveness of monetary policy in June.

Meanwhile, Fed Chair Jerome Powell reiterated the US central bank stance, suggesting they would begin to cut borrowing costs at some point in the year. Nevertheless, he added that it would depend on the inflation path, moving sustainably towards the Fed’s 2% goal.

Regarding the labor market, which, according to Powell, remains robust, the number of Americans filling for unemployment claims rose by 217,000, unchanged from the previous week, an exceeded estimate of 215,000.

Other data showed that the US trade deficit widened from $-64.2 billion to $-67.4 billion, exceeding forecasts, according to the US Department of Commerce