Australian dollar struggles to prolong gains, while China’s Xi Jinping is scheduled to meet with US businesses.
The Australian Dollar (AUD) loses its intraday gains on Tuesday. However, the drop in the US Dollar (USD) helped to boost the AUDUSD pair in the early Asian hours. The Australian dollar saw minor negative pressure with the release of Australia’s Westpac Consumer Confidence data. Which slipped 1.8% to 84.4 in March 2024 from February’s 86.0, weakening from Twenty-month highs.
The Australian equity market gains, strengthening the Australian dollar.
Expectations of a rate decrease boosted the Australian equity market. Aided by a drop in Australian consumer confidence. Which contributed to the Australian Dollar’s rise. Despite some weakening on Wall Street overnight. The ASX 200 Index continued its winning streak. Investors are expected to eagerly watch the release of the Australian monthly Consumer Price Index (CPI) data on Wednesday.
The US Dollar Index (DXY) fell for the second day in a row. Thanks in large part to falling US Treasury yields. The market is expecting the Federal Reserve (Fed) to begin an easing cycle. With speculation pointing to a June start date.
Daily Market Movers: Australian Dollar Loses Ground on Weakened ASX 200.
The Australian government has promised to should support an inflation-adjusted minimum wage hike this year. Acknowledging the persistent problems that low-income families confront as living costs rise.
According to a Bloomberg survey of experts, the People’s Bank of China (PBoC) is expected to impose two additional Reserve Requirement Ratio (RRR) cuts in 2024, for a total of 50 basis points.
Chinese President Xi Jinping will meet with American business executives in Beijing on Wednesday. Following his November dinner with US investors in San Francisco. The conference was convened by Evan Greenberg, CEO of US insurer Chubb. Attendees include Stephen Orlins, president of the National Committee on US China Relations. And Craig Allen, president of the US China Business Council.
The greenback is struggling as the Fed is expected to begin a rate-cutting cycle in June.
Atlanta Fed President Raphael Bostic stated that he expects only one rate decrease this year. Warning that lowering rates early could cause more disruption.
Chicago Fed President Austan Goolsbee agrees with the majority of the board and anticipates three cuts. However, Goolsbee stated. That more proof of a fall in inflation is required before moving with rate cuts.
US new home sales fell by 0.3% month on month, compared to a 1.7% increase the prior month.
US new home sales (MoM) were 0.662 million. Down from the predicted 0.680 million in February and 0.664 million the previous month.
S&P Global Services PMI fell slightly in March to 51.7 from 52.3. The expected reading was 52.0. Manufacturing PMI increased to 52.5 from the predicted 51.7 and 52.2 before. Composite PMI fell slightly to 52.2 from 52.5 previously.
Initial jobless claims for the week ending March 15 were 210K. Which was lower than the projected 215K and the previous week’s 212K.
