AUDUSD pair steady after Sarah Hunter, Assistant Governor (Economics) at the RBA, made a statement.
AUDUSD pair remained unchanged on Wednesday following comments from Sarah Hunter, Assistant Governor for Economics at the Reserve Bank of Australia (RBA). However, the Australian Dollar’s (AUD) losses may be justified because RBA Governor Michele Bullock maintained a hawkish perspective last week, stating that it is too early to discuss rate cuts with high inflation.
Sarah Hunter of the Reserve Bank of Australia stated that high interest rates lowering demand, which projected to cause a minor economic slowdown.
RBA’s Assistant Governor Sarah Hunter stated that high interest rates are depressing demand, contributing to a slight economic slowdown. Hunter also stated that the labor market remains tight relative to full employment levels, with employment growth expected to continue but at a slower rate than population growth, according to Reuters.
The AUDUSD pair was under pressure as the US Dollar strengthened following a recent US job market report, which threw doubt on the probability of an aggressive interest rate cut by the Federal Reserve (Fed) at its upcoming September meeting.
Donald Trump said that the import taxes he proposes to implement would not raise US prices.
During the US presidential debate, Donald Trump said that the tariffs he intends to charge on imports will not This results in increased prices for Americans. He went on: “Who’s going to have higher prices in China and all of the countries that have been ripping us off for years.”
Daily Market Movers: The AUDUSD consolidates amid increased risk-off sentiment.
According to the CME FedWatch Tool, markets fully expect the Federal Reserve to decrease interest rates by at least 25 basis points (bps) at its meeting in September. The possibility of a 50 basis point rate drop has decreased to 31.0%, from 38.0% a week ago.
Robin Xing, Morgan Stanley’s Chief China Economist, indicated that China is clearly experiencing deflation, which is likely to be in its second stage. Xing observed that Japan’s experience indicates that the longer deflation persists, the greater the need for China Business Standard reports that considerable stimulus measures will be implement to address the debt-deflation crisis.
Australia’s Westpac Consumer Confidence decreased 0.5% month on month in September, following a 2.8% increase in August.
China’s Trade Balance reported a trade surplus of CNY 649.34 billion in August, up from the previous figure of CNY 601.90 billion. Meanwhile, Chinese exports (CNY) rose by 8.4% year on year, following a 6.5% gain the previous year.
RBC Capital Markets now anticipates the Reserve Bank of Australia to decrease interest rates at its February 2025 meeting, rather than in May 2025. Despite the fact that inflation in Australia remains over the RBA’s objective, slowing economic growth is not deemed a sufficient justification to cut interest rates this year.
United States Bureau of Labor Statistics stated that Nonfarm Payrolls (NFP) added 142,000 jobs in August.
The United States Bureau of Labor Statistics The Bureau of Labor Statistics (BLS) stated that Nonfarm Payrolls (NFP) added 142,000 jobs in August, falling short of the projection of 160,000 but improving on July’s downwardly revised 89,000 result. Meanwhile, the unemployment rate decreased to 4.2%, as projected, from 4.3% the previous month.
According to CNBC, Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee stated on Friday that Fed officials are beginning to align with the broader market’s belief that the US central bank would raise interest rates soon.
