AUDUSD recovers its intraday losses following the announcement of China’s trade balance statistics.
AUDUSD pair advanced following the announcement of China’s Trade Balance statistics on Tuesday. However, the Australian Dollar (AUD) struggled against the US Dollar (USD) following the disappointing Westpac Consumer Confidence.
Furthermore, the AUDUSD pair experienced hurdles as the US Dollar found support. A recent US labor market report increased uncertainty over the probability of an aggressive interest rate cut by the The Federal Reserve (Fed) held its September meeting.
China’s trade balance increased to CNY 649.34 billion in August, up from CNY 601.90 billion in the previous month.
China’s Trade Balance reported a trade surplus of CNY 649.34 billion in August, up from the previous figure of CNY 601.90 billion. Meanwhile, Chinese exports (CNY) rose by 8.4% year on year, following a 6.5% gain the previous year.
Australia’s Westpac Consumer Confidence decreased 0.5% month on month in September, following a 2.8% increase in August. Traders are waiting for China’s trade balance data, which is slated to be announced later today. Given Australia and China’s tight trading ties, changes in the Chinese economy could have a big impact on Australian markets.
Daily Market Movers: AUDUSD extends down due to rising risk aversion.
According to the CME FedWatch Tool, markets are fully expecting at least a 25 basis. The Federal Reserve reduced interest rates by a point (bps) at its September meeting. The possibility of a 50 basis point rate drop has decreased to 29.0%, from 30.0% a week ago.
China’s Consumer Price Index (CPI) increased by 0.6% year on year in August, up from 0.5% in July but lower than the market consensus of 0.7%. On a monthly basis, CPI inflation rose by 0.4% in August, down from 0.5% in July and below the 0.5% forecast.
RBC Capital Markets now anticipates the Reserve Bank of Australia to decrease interest rates at its February 2025 meeting, rather than in May 2025. Despite the fact that inflation in Australia is higher than the RBA’s target, slower economic growth is not regarded a significant justification for Rates will be reduced this year.
US Bureau of Labor Statistics (BLS) stated that Nonfarm Payrolls (NFP) added 142,000 jobs in August, falling short of the projection of 160,000.
The US Bureau of Labor Statistics (BLS) stated that Nonfarm Payrolls (NFP) added 142,000 jobs in August, falling short of the projection of 160,000 but improving on July’s downwardly revised result of 89,000. Meanwhile, the unemployment rate decreased to 4.2%, as projected, from 4.3% the previous month.
According to CNBC, Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee stated on Friday that Fed officials are beginning to align with the broader market’s belief that the US central bank would raise interest rates soon. FXStreet’s FedTracker, which employs a custom AI algorithm to evaluate Fed officials’ statements on a dovish-to-hawkish scale of 0 to 10, gave Goolsbee’s views a 3.2.
