Aussie remains strong for the second day in a row, with bids picking up following positive data.
AUDUSD renews its intraday high at 0.6660 during early Tuesday. The AUDUSD fails to explain lower Australia Retail Sales growth despite higher mood. As a result, the risk barometer pair benefits from broader US Dollar depreciation ahead of critical Australian and US data. Seasonally adjusted Retail Sales growth in Australia in February was 0.2%, compared to 1.9% before.
Australian purchasers are also encouraged by bullish statements from an Australian ambassador and the US Treasury, which add to banking optimism.
In contrast to the bleak statistics, easing concerns over banks failures allow the AUDUSD pair to remain stronger for the second day in a row.
Market confidence initially improved as regulators in the United States and Europe extended emergency credit lines to ailing banks and announced deposit protection plans. Recent statements from central bank officials rebuking the Fed have fueled the risk-on mindset. Concerns about the banking crisis and the Silicon Valley Bank (SVB) transaction.
Yet, while appearing on local radio early Tuesday, Australia’s Assistant Treasurer and Minister for Financial Services Stephen Jones attempted to revive market confidence in Australian banks. “Australia’s banking system is robust,” the policymaker said, adding that Australia’s financial sector is well-equipped to deal with global economic issues.
RBA’s Ellis and US CB Consumer Confidence are being watched for intraday movement, and Aussie/US inflation hints are crucial.
On the other hand, recent remarks by Federal Reserve Governor Philip Jefferson. And the US Dollar’s safe-haven demand may have contributed to the AUDUSD pair’s rise. Not to mention disappointing US statistics. “Inflation ‘has begun to fall. With part of it attributable to tighter monetary policy and some due to other reasons such as improved global supply networks.” The report says. remarked Jefferson of the Fed. Meanwhile, in his prepared testimony to Congress. Federal Reserve Vice Chair for Supervision Michael Barr stated. “We are prepared to employ all of our powers for whatever size institution as needed to keep the system secure.” On the same topic, the US Treasury stated that the country will continue to use mechanisms to avoid banking contagion as appropriate.
It should be mentioned that the US Dallas Fed Manufacturing Business Index fell to -15.7 in March, down from -10.9 predicted and -13.5 the previous month.
Among these bets, the S&P 500 Futures see minor gains, while US Treasury bond rates climb following a three-week decline.
After the first response to Australia’s Retail Sales, AUDUSD pair traders may decide to wait. for more commentary from Luci Ellis, Assistant Governor (Economic) at the Reserve Bank of Australia. If the policymaker praises the new data and dismisses dovish worries, the Australian pair might see more gains.
The US Conference Board’s (CB) Consumer Confidence for March, on the other hand, will join the second-tier housing and activity statistics to keep pair traders entertained. But the focus will be on Wednesday’s Monthly Inflation for Australia and the Fed’s preferred inflation indicator, the Core Personal Consumption Expenditure (PCE) Price Index, which will be released on Friday.
AUDUSD Daily Trend
| Daily SMA20 | 0.6672 |
| Daily SMA50 | 0.684 |
| Daily SMA100 | 0.6794 |
| Daily SMA200 | 0.6757 |
