• Australian Dollar hovers below a psychological resistance amid a weaker S&P/ASX 200.
• Reserve Bank of Australia Governor Michele Bullock reaffirmed the commitment to managing inflation.
• CBA maintains its forecast of 75 bps rate cuts for 2024, with the initial cut anticipated in September.
• The US Dollar attempts to extend its gains despite the weaker US bond yields.

The Australian Dollar (AUD) consolidates with a downward bias on Friday, following the losses registered in the previous two sessions. The AUD/USD pair encounters difficulties amidst the downbeat performance of the S&P/ASX 200, along with the weaker prices of coal and iron ore. Moreover, the US Dollar (USD) strengthened against the Australian Dollar (AUD), supported by the uptick in US Treasury yields observed on Thursday.

Australian Dollar may have found some support as Reserve Bank of Australia (RBA) Governor Michele Bullock reaffirmed the RBA's commitment to managing inflation, noting encouraging signs in inflation data. Bullock highlighted that while the board has not ruled out the possibility of further interest rate hikes, it has also not confirmed any. However, the Commonwealth Bank of Australia (CBA) maintains its forecast of 75 basis points in benchmark interest rate cuts for 2024, with the initial cut anticipated in September.

The US Dollar Index (DXY) strives to build on its recent uptrend for the second consecutive day, even as US bond yields dip. This resilience is largely attributed to hawkish remarks from the US Federal Reserve (Fed) officials, which continue to bolster the US Dollar. Furthermore, positive data from the US job market likely provides additional support to the strengthening of the Greenback.

Federal Reserve Richmond President Thomas Barkin reiterated on Thursday that policymakers have the flexibility to exercise patience regarding the timing of rate adjustments, citing a robust labor market and persistent disinflation. Federal Reserve Chair Jerome Powell also dismissed the notion of a rate cut in March during a press conference following the interest rate decision on January 31.

US Initial Jobless Claims declined to 218K in the week ending on February 2, from the previous week's 227K, surpassing the estimated figure of 220K. Continuing Jobless Claims dropped to 1.871M for the week ending January 26. Market forecasts anticipated a decrease of 1.878M from the previous reading of 1.894M