Australian dollar strengthens against a weaker US dollar, but Australian consumer confidence is expected to rise.
The Australian Dollar (AUD) begins the week by regaining its recent losses from the previous session. The AUDUSD pair is trading higher on Monday. Despite a modest fall in the US Dollar (USD) due to rising US Treasury yields. Investors are expected to keenly examine Australia’s monthly Consumer price Index (CPI) data for February. As well as US GDP for the fourth quarter of 2023.
The CNY had a large upward rise as a result of FX intervention, with Chinese big state banks selling USDCNY.
The Australian dollar rises as the ASX 200 Index extends its winning streak. Boosted by increases in the mining and energy sectors. Furthermore, the Australian dollar is supported by a firmer Chinese yuan (CNY). With the People’s Bank of China (PBoC) setting the onshore yuan mid-rate much higher than predicted.
Fed Atlanta President Raphael Bostic lowered his former expectation of two interest rate decreases this year and now expects just one.
The US Dollar Index (DXY) is correcting after reaching a five-week high of 104.49 in the previous session. The US Dollar (USD) may suffer negative pressure as current US data affects expectations. For the commencement of the Federal Reserve’s (Fed) easing cycle. Which is expected to begin in June. The federal The Federal Reserve (Fed) has downplayed increasing inflation readings, with Chairman Jerome Powell assuring investors that the central bank will not respond hastily to two consecutive months of rising inflation statistics.
Daily Market Movers: The Australian dollar rises on stronger CNY, ASX200
The Australian employment change in February jumped to 116.5K, exceeding predictions of 40.0K and the prior result of 15.3K.
Australia’s unemployment rate fell to 3.7%, lower than the expected 4.0% and the previous 4.1%.
The Australian government has vowed to support a minimum wage hike in line with inflation this year, recognizing the persistent challenges that low-income people confront as living costs rise.
China’s Premier Li Qiang noted on Sunday that the country’s low inflation rate and low central government debt ratio allow great headroom. lower US dollar, awaits Australian consumer confidence.
