In the Tokyo session, the AUDUSD pair has been trading sideways above the round-level support of 0.6800. Despite the Reserve Bank of Australia (RBA) minutes indicating that more interest rate rises are needed, the Australian currency has failed to attract buyers.
At the RBA’s monetary policy meeting in July, policymakers favored the Australian economy. And the board chose to hold interest rates constant. Consumer spending was poor in the second quarter. And GDP was flat. At roughly 0.2%, illustrating the effects of strong policy tightening.
Despite RBA minutes indicating that additional interest rate rises are necessary, the AUDUSD asset has failed to attract buyers.
Investors should keep in mind that interest rates set by the RBA and other developed countries. Differ significantly, leaving plenty of space for additional increases.
This week, AUDUSD investors will be looking for employment statistics from Australia. Which will be issued on Thursday at 01:30 GMT. According to the consensus, the new payroll increase is expected to be 17K, which is much lower than the previous release of 75.9K. The unemployment rate is predicted to stay unchanged at 3.6%.
In Asia, S&P500 futures have registered minor losses, indicating caution among market players.
Meanwhile, S&P500 futures have registered modest losses in Asia, indicating market players’ concern. On Monday, US equities gained ground as investors hoped that only one interest rate rise remained in the Fed’s inflation-control toolbox. the Federal Reserve System (Fed).
After failing to persist above the psychological barrier of 100.00. The US Dollar Index (DXY) has corrected to approach its critical support of 99.75. Further movement in the US Dollar Index would be sparked by the release of US Retail Sales (June) data at 12:30 GMT.
