Australian dollar’s winning streak came to an end on Tuesday as the US dollar Strengthened.

On Tuesday, the Australian Dollar (AUD) ended a four day winning streak as the US Dollar (USD) Strengthened. Higher US Treasury rates boost the greenback, putting pressure on the AUDUSD pair. In addition, a weaker Australian money market weighed on the AUD.

Australia’s ASX 200 index falls, weighing on the Aussie.

The S&P/ASX 200 index’s winning streak came to an end, as mining and energy sectors fell in response to lower commodity prices.
The Australian Dollar avoids reacting to The minutes of the Reserve Bank of Australia’s (RBA) February monetary policy meeting. The RBA Board debated whether to raise interest rates by 25 basis points (bps) or keep them at their current level. While statistics increased the board’s confidence that inflation would return to target within a reasonable timeframe, it was underlined that it would “take some time” for the board to be sufficiently confident in inflation. As a result, the board decided that it was prudent not to rule out another rate hike.

PBoC maintains its one-year LPR at 3.45% while lowering the five-year LPR by 25 basis points.

The US Dollar Index (DXY) edged higher as the market returned from a holiday-extended weekend, with investors looking forward to the release of the US Federal Open Market Committee (FOMC) Minutes on Wednesday. ANZ predicts that the Federal Reserve (Fed) will initiate Rate reduction start in July 2024. According to the CME FedWatch Tool, the US Fed is around 53% likely to decrease interest rates by 25 basis points at its June meeting.

Daily Market Movers: Australian Dollar Declines on Improved US Dollar.

Australian Dollar (AUD) ended a four day winning streak as the US Dollar (USD) Strengthened.

The ANZ–Roy Morgan Consumer confidence increased to 82.8 this week, up from 82.6 the previous week. Remarkably, the index has now spent a record 55 consecutive weeks below 85.
Westpac anticipates a resilient Australian economy, buoyed by low unemployment and strong corporate balance sheets. Westpac forecasts that the RBA will maintain its present monetary policy stance through 2024 before adopting a less restrictive strategy in 2025.
The People’s Bank of China (PBoC) has chosen to keep the one-year Loan Prime Rate (LPR) at  3.45%. The PBoC also decreased the five-year LPR by 25 basis points, from 4.20% to 3.95%.
The Premier of the People’s Republic of China, Li Qiang, underlined the necessity of maintaining consistent and stable policies. The PBoC decided to retain its Medium-term Lending Facility (MLF) rate unchanged at 2.5%.
The Federal Reserve’s dot plot for this year predicts 75 basis points in rate reduction, while the Fed funds futures market anticipates 89 basis points in decreases.

San Francisco Federal Reserve President Mary C. Daly spoke at the Annual National Association for Business Economics (NABE) Policy Conference.

San Francisco Federal Reserve President Mary C. Daly spoke at the Annual National Association for Business Economics (NABE) Policy Conference, stating that three rate decreases are an acceptable baseline for 2024. Daly stressed that it is premature to consider letting the economy to operate. Without interference.
James Bullard, president of the St. Louis Federal Reserve (Fed), urged at the NABE conference that the Federal Reserve consider decreasing interest rates at its March meeting to avoid hurting economic activity owing to rising rates.
The preliminary Michigan Consumer Sentiment Index rose to 79.6 from 79.0 previously, but fell short of the predicted figure of 80.0.
The US Core Producer Price Index (YoY) increased by 2% in January, exceeding expectations of 1.6% and 1.7%. The MoM statistics revealed a 0.5% increase, compared to the projected 0.1% improvement from the preceding 0.1% fall.
The US Producer Price Index increased by 0.9% year on year, compared to the expected 0.6% and the prior growth rate of 1.0%. Meanwhile, the monthly improvement was 0.3%, compared to the prior fall of 0.1%.In January, US building permits (MoM) fell to 1.470 million, compared to a projected increase to 1.509 million from 1.493 million the previous month.

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