Australian Dollar continues to fall against the strong US Dollar.
On Monday, the Australian Dollar (AUD) continues its losses for the second consecutive session. On Friday, the strong employment numbers in the United States (US) boosted the Greenback, putting negative pressure on the AUDUSD pair. Furthermore, fears of deflation in China, combined with Consumer Price Index (CPI) and Producer Price Index (PPI) readings that fell short of expectations, contributed to a sell-off on the stock market The Australian Dollar (AUD) is the currency of Australia.
Michele Bullock, Australia’s chief policymaker, will deliver a speech on Tuesday.
The Governor of Australia’s Reserve Bank of Australia (RBA), Michele Bullock, is set to deliver a speech on Tuesday. At its December meeting, the RBA decided to keep the cash rate at 4.35%. While the RBA maintains a tightening stance, recent economic indications indicate that no further rate hikes are likely in the foreseeable future.
The US Bureau of Labor Statistics (BLS) reported on Friday that November Nonfarm Payrolls (NFP) in the United States exceeded market expectations. Simultaneously, the unemployment rate fell throughout the same time period. As a result, US Treasury yields have risen, lending support to the USD’s strengthening.
The improved employment report has sparked debate and conjecture regarding the US Federal Reserve’s next steps. (Fed) monetary policy and the length of time the central bank aims to keep interest rates at restrictive levels. The US Consumer Price Index (CPI) will be released on Tuesday, followed by the Fed’s interest rate decision on Wednesday.
Daily Market Movers: The Australian Dollar falls with a bearish tilt.
Last week, Australia’s Trade Balance (MoM) statistics was announced, revealing a surplus of 7,129M versus the expected amount of 7,500M in October.
The Consumer Price Index (CPI) in China fell 0.5% year on year in November, following a 0.2% drop in October. Chinese inflation declined by 0.5% month on month, exceeding the 0.1% drop seen in October.
In November, China’s Producer Price Index (PPI) fell 3.0% year on year, showing a more volatile economy. Significantly lower than the 2.6% drop reported in October.
Nonfarm payrolls in the United States increased by 199,000 in November, compared to a previous increase of 150,000 in October and a market expectation of 180,000.
US Average Hourly Earnings (Year on Year) remained stable at 4.0% in November, in line with market expectations. Meanwhile, the unemployment rate fell to 3.7% from 3.9% previously.
The preliminary Michigan Consumer Sentiment Index for December was 69.4, up from 61.3 the previous month.
