Australian dollar remains sluggish as strong US labor data would support the Fed’s aggressive attitude.

The Australian Dollar (AUD) stays weak on Monday, after its fall in the previous session. The US Dollar (USD) regained its strength after better than expected US employment data was announced on Friday, prompting traders to postpone their expectations of Federal Reserve (Fed) rate reduction. This has put pressure on the Australian Dollar currency pair.

The Australian dollar may restrict its downside because of the There is a hawkish mood surrounding the Reserve Bank of Australia (RBA). According to NCA NewsWire, RBA Governor Michele Bullock warned last week that if the Consumer Price Index (CPI) does not return to the target range of 1%-3%, the central bank will raise interest rates.

The US Dollar (USD) is extending its gains as US Treasury yields rise.

The Australian Dollar (AUD) stays weak on Monday, after its fall in the previous session. The US Dollar (USD) regained its strength after better than expected US employment data was announced on Friday.

The US Dollar (USD) extends its gains as US Treasury yields rise, with a positive US jobs report expected to reinforce the Federal Reserve’s hawkish attitude. According to the CME FedWatch Tool, the chances of the Fed cutting interest rates by at least 25 basis points in September have dropped to approximately 48.0%, down from 54.8% a week ago.

Daily Market Movers: Australian Dollar remains stable till more signal of Fed policy.

The Australian Dollar (AUD) stays weak on Monday, after its fall in the previous session. The US Dollar (USD) regained its strength after better than expected US employment data. Rabobank suggested in their According to reports, the Federal Reserve may decrease interest rates in September and December, owing to a weakening economy rather than progress on inflation. This is because they believe the US economy is approaching a stagflationary period, with persistent inflation and an economic slowdown that will likely result in a moderate recession later this year.

The US Bureau of Labor Statistics (BLS) reported on Friday that May’s US Nonfarm Payrolls (NFP) climbed by 272,000, up from 165,000 in April. Wage inflation, as measured by average hourly earnings, increased 4.1% year on year in May, up from 4.0% (raised from 3.9%) in April, exceeding the market consensus of 3.9%.
On Friday, China’s National Bureau of Statistics reported thatAccording to reports, the Federal Reserve may decrease interest rates in September and December, owing to a weakening economy rather than progress on inflation. This is because they believe the US economy is approaching a stagflationary period, with persistent inflation and an economic slowdown that will likely result in a moderate recession later this year.

US Bureau of Labor Statistics (BLS) reported on Friday that May’s US Nonfarm Payrolls (NFP) climbed by 272,000.

The US Bureau of Labor Statistics (BLS) reported on Friday that May’s US Nonfarm Payrolls (NFP) climbed by 272,000, up from 165,000 in April. Wage inflation, as measured by average hourly earnings, increased 4.1% year on year in May, up from 4.0% (raised from 3.9%) in April, exceeding the market consensus of 3.9%.
On Friday, China’s National Bureau of Statistics reported that the trade surplus widened to the trade surplus widened to $82.62 billion year on year in May, exceeding the forecast balance of $73.00 billion and the previous balance of $65.55 billion. Meanwhile, imports increased by 1.8% year on year to USD 219.73 billion in May, falling short of market expectations of 4.2% and far lower than the 8.4% increase seen in April. Because China and Australia are close trading partners, any economic change in China could have an impact on the Australian market.
On Friday, Australia’s trade balance increased to A$6,548 ($4,321.68) million MoM in May, beating the predicted A$5,500 million and April’s balance of A$5,024 million. Imports fell by 7.2% MoM in May, reversing April’s 4.2% gain. Exports fell 2.5%, following a 0.6% drop the previous month.
On Thursday, Initial Jobless Claims revealed the number of persons collecting unemployment benefits in The US grew by 8,000 to 229,000 in the week ended May 31, exceeding market forecasts of 220,000. This is the highest figure since the eight-month high of 232,000 set in early May.

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