AUDUSD pair regains strong momentum on Thursday, breaking above the 0.6800.
The AUDUSD pair regains strong momentum on Thursday, breaking above the 0.6800 round-figure barrier during the Asian session. Spot prices are now trading with high intraday gains of more than 0.80%. And are strongly supported by the persistent selling bias in the US Dollar (USD).
The Greenback is under pressure due to expectations that the Fed is reaching the conclusion of its rate-hiking cycle.
In reality, the USD Index (DXY), which measures the value of the US dollar against a basket of currencies. Falls for the third day in a row and falls further from a two-week high reached on Tuesday. A broad statement A crucial factor weighing on the Greenback is the belief. That the Federal Reserve (Fed) is nearing the conclusion of its current policy tightening cycle. Aside from that, recent optimism about future Chinese stimulus measures weakens the safe-haven greenback. And supports antipodean currencies, notably the Australian Dollar (AUD).
The USD’s fall appears to be limited, since the Fed left the door open for another rate rise in September or November. It is worth noting that Fed Chair Jerome Powell stated at the post-meeting press conference. That the economy must still slow and the labor market deteriorate for inflation to return to the 2% objective credibly. The remarks follow the widely anticipated move to raise interest rates. By 25 basis points, to the 5.25%-5.50% area. The highest level in 22 years, and strengthen possibilities for some USD dip-buying.
Hopes for additional Chinese stimulus lift the Australian dollar, which remains supportive of the uptrend.
Furthermore, weaker Australian consumer inflation data issued on Wednesday strengthens the case for the Reserve Bank of Australia (RBA) to defer further rate rises. This, combined with China’s economic troubles, might be a drag on the China-proxy Aussie. Profits at China’s industrial enterprises fell 16.8% in the first half of the year, according to the National Bureau of Statistics (NBS), due to weak domestic and international demand. This calls for prudence when putting new bullish wagers on the AUDUSD pair.
As a result, it remains to be seen if bulls can profit on the advance. beyond the 0.6800 round number, or choose to grab some gains before the critical US economic data. The Advance Q2 GDP report, Durable Goods Orders, Weekly Initial Jobless Claims, and Pending Home Sales are all scheduled for publication on Thursday in the United States. The data may affect USD price dynamics, allowing traders to take advantage of short-term chances surrounding the AUDUSD pair later in the early North American session.
