AUSTRALIAN DOLLAR GRAPPLES TO EXTEND GAINS AHEAD OF US CPI
- Australian Dollar marked to four-week high at 0.6644 on Tuesday.
- Australian currency strengthens on investors' doubts surrounding the RBA’s rate cuts in 2024.
- US Dollar receives downward pressure ahead of US CPI and FOMC minutes.
The Australian Dollar (AUD) attempts to extend gains for the third consecutive session on Wednesday. The AUD/USD pair reached to four-week high at 0.6644 in the previous session as the US Dollar (USD) faced a struggle, which could be attributed to the decline in the US Treasury yields.
The Australian Dollar gains strength as investors become increasingly skeptical about the necessity for the Reserve Bank of Australia (RBA) to implement interest rate cuts in 2024, given the anticipation of the Federal Reserve (Fed) extending its higher interest rate stance.
The Reserve Bank of Australia has indicated that further rate hikes are unlikely, stating that it requires more confidence in the inflation outlook before considering rate cuts. Traders await the Reserve Bank of New Zealand’s (RBNZ) interest rate decision on Wednesday. Furthermore, the focus will shift to the release of the US Consumer Price Index (CPI) data and the FOMC Minutes later in the North American session.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.