Australian dollar extends its advances following favorable economic statistics from Australia.
The Australian Dollar (AUD) rose for the second straight session on Thursday, possibly boosted by solid employment data from Australia. Concurrently, the US Dollar (USD) fell significantly following the Federal Open Market Committee’s (FOMC) decision to keep interest rates at 5.5% during Wednesday’s policy meeting. This ruling lent support to the Australian dollar pair. Furthermore, remarks made by US Federal Reserve (Fed) Chair Jerome Powell during the post meeting press conference, indicated A dovish posture put extra downward pressure on the greenback.
The Australian share market reversed its intraday gains and fell into negative territory. This may limit the Australian Dollar ascent. However, earlier in the trading day, the ASX 200 Index rose by about 1.0%, mirroring a Wall Street gain from the previous session.
The US dollar falls after the Fed reaffirms projections for three interest rate cuts in 2024.
The US Dollar Index (DXY) fell sharply on Thursday, following a large loss the previous day. Weaker US Treasury yields contributed to the US Dollar’s decline, which was most likely affected by the Fed’s reaffirmation of three interest rate reduction in 2024.
Daily Market Movers: The Australian dollar rises on good market mood.
The Australian Dollar (AUD) rose for the second straight session on Thursday. The Australian Employment Change for February skyrocketed to 116.5K, above predictions of 40.0K.
The previous figure was 15.3K.
Australia’s unemployment rate rose by 3.7%, which was lower than the expected 4.0% and the previous 4.1%.
The preliminary Judo Bank Services PMI increased to 53.5 from the previous 53.1.
The Judo Bank Composite PMI increased slightly, hitting 52.4 from the previous 52.1.
The People’s Bank of China (PBoC) has left the interest rate constant at 3.45%.
Chinese Foreign Minister Wang Yi met with Australian Foreign Affairs Minister Penny Wong. The Chinese stressed their tremendous potential. They emphasized that China-Australia ties are growing well and warned against any pause, diversion, or reversal in this forward momentum.
During the FOMC Press Conference, Fed Chair Jerome Powell underlined that, while inflation is showing signs of easing, the persistence Price growth remains a major concern that the Fed cannot ignore.
US building permits (MoM) increased to 1.518 million in February, compared to expectations of 1.495 million and 1.489 million the previous month.
US housing starts (MoM) increased to 1.521 million from 1.374 million in February, above the market forecast of 1.425 million.
The preliminary US Michigan Consumer Sentiment Index for March fell to 76.5 from 76.9. This reduction is in contrast to assumptions that it will remain stable.
