AUD/USD flat-lines above mid-0.6900s amid modest USD strength, cautious market mood – by hareshmenghani AUDUSD Fed Inflation RBA Currencies
ier this Monday. The pair is currently placed around the 0.6970 area, nearly unchanged for the day, and is influenced by the US Dollar price dynamics.
The USD Index, which measured the greenback's performance against a basket of currencies, stages a goodish rebound from a seven-month low and prompts some selling around the AUD/USD pair. A softer tone risk tone, amid worries about a deeper global economic downturn, benefits the safe-haven buck and drives flows away from the risk-sensitive Aussie. That said, speculations that themay be nearing the end of its rate-hiking cycle keep a lid on any meaningful upside for the USD.
Investors now seem convinced that the US central bank will soften its hawkish stance amid signs of easing inflationary pressures. In fact, the latest US CPI report released last week showed that consumer prices fell in December for the first time in more than 2-1/2 years. This, in turn, lifted bets for a smaller 25 bps Fed rate hike move in February, which continues to act as a headwind for the buck and helps limit deeper corrective pullback for the AUD/USD pair, at least for now.
The Australian Dollar, on the other hand, draws support from rising odds for a further interest rate hike by the Reserve Bank of Australia in February, bolstered by stronger domestic inflation figures released last week. This, in turn, makes it prudent to wait for strong follow-through selling before confirming that the AUD/USD pair has topped out in the near term. Traders now look forward to important Chinese macro data, due for release on Tuesday, for a fresh impetus.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Pairs in Focus This Week-GBP/USD, EUR/USD, USD/JPY, AUD/USDGet the Forex Forecast using fundamentals, sentiment, and technical position analyses for major pairs for the week of January 15th, 2022 here.
Read more »
Weekly Forex Forecast \u2013Gold, EUR/USD, USD/JPY, AUD/USDThe difference between success and failure in Forex / CFD trading is highly likely to depend mostly upon which assets you choose to trade each week.
Read more »
AUD/USD surpasses 0.7000 as USD Index refreshes seven-month low, China’s GDP eyedThe AUD/USD pair has surpassed the psychological resistance of 0.7000 for the first time in the past five months in the Asian session. The Aussie asse
Read more »
AUD/USD eases from five-month high, holds steady below 0.7000 amid sustained USD sellingThe AUD/USD pair kicks off the new week on a positive note and climbs to its highest level since mid-August during the Asian session. The pair, howeve
Read more »
AUD/USD Price Analysis: Bullish breakout on the cards or have we seen the highs?It's been a roller coaster of a ride to start the year and AUD/USD has been one of the most volatile love the past week, driven on fundamentals, both
Read more »
AUD/USD bulls eye a break of 0.6990s as domestic data underpins hawkish RBA sentimentAUD/USD is trading at 0.6970 and in a tight 10-pip range between 0.6967 and 0.6977 on the day so far. The price has been capped below the recent 0.699
Read more »