AUD/USD built on losses recorded at the beginning of the week and receded to fresh two-week lows in the 0.6715-0.6710 band on Tuesday.
AUD/USD kept a bearish tone in the first half of the week. Extra gains in the US Dollar weighed on the risk complex. The Westpac Leading Index and the RBA ’s Simon are due next. The pair's second daily pullback came in tandem with further gains in the US Dollar , despite declining US yields and market chatter signalling that a rate cut by the Fed in September appears almost fully priced in.
There is about a 25% chance of a rate cut in August, increasing to around 50% in the subsequent months. Potential easing by the Fed in the medium term, in contrast to the RBA’s likely prolonged restrictive stance, could support AUD/USD in the coming months. However, concerns about the slow momentum in the Chinese economy might hinder a sustained recovery of the Australian currency as China continues to face post-pandemic challenges.
Recommended Australia RBA Currencies
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.
AUD/USD Price Analysis: AUD/USD remains above 0.6750; next barrier at upper boundaryAUD/USD extends its losses for the third successive day, trading around 0.6760 during the European hours on Thursday.
Read more »
AUD/USD Forecast: Next stop comes at 0.6700AUD/USD extended its recovery for the second day in a row, testing the upper-0.6600s, or multi-session tops, on the back of improved sentiment in the risk-related markets, extra weakness in the US Dollar (USD), and further adjustments to the recent RBA meeting.
Read more »
AUD/USD Forecast: The 200-day SMA holds the downside so farAUD/USD halted its recovery after two straight advances in a row, driven by improved sentiment in the US Dollar (USD) and a broad-based risk-off sentiment dominating the FX world.
Read more »
AUD/USD Forecast: Bulls may soon take their chancesThe Australian Dollar (AUD) trades around the 0.6660 mark against its American rival, with the US Dollar losing some ground on Monday.
Read more »
AUD/USD Forecast: Further consolidation on the tableAUD/USD resumed its downtrend and rapidly set aside Monday’s bullish attempt, maintaining its range bound theme in the sub-0.6700 region well in place for yet another session on Tuesday.
Read more »
AUD/USD Forecast: Next target remains at 0.6700AUD/USD partially reversed Tuesday’s drop and advanced marginally despite the continuation of the intense recovery in the US Dollar (USD) on Wednesday.
Read more »