Australian dollar fell as risk aversion increased.
The Australian dollar (AUD) falls on Thursday as risk aversion prevails. The AUDUSD pair continued to face challenges as a result of lower Australian Consumer Inflation Expectations and Retail Sales statistics. These considerations raised predictions that the Reserve Bank of Australia (RBA) will contemplate interest rate reduction in the second half of 2024. Furthermore, the weaker Australian Monthly Consumer Price Index released on Wednesday lent support to this view.
Australia’s retail sales (MoM) climbed by 0.3%, compared to expectations of 0.4% and 1.1%.
Consumers in Australia expected future inflation to be 4.3% in March saw a modest dip from the prior increase of 4.5%. February’s seasonally adjusted Retail Sales increased by 0.3% month on month. Falling short of expectations of 0.4% and a prior 1.1%. Furthermore, on Wednesday, Australia’s Monthly Consumer Price Index (YoY) for February rose 3.4%. Remaining consistent with previous levels but slightly lower than the expected 3.5%.
The US dollar falls ahead of Thursday’s release of annualized US GDP figures.
The US Dollar Index (DXY) looks to have paused its two-day winning streak. Sliding lower ahead of the release of US Personal Consumption Expenditures (PCE) data on Friday. Nonetheless, the recent increase in US Treasury yields may have boosted. The US Dollar (USD) amidst different views among Federal Open Market Committee (FOMC) members on monetary policy easing.
Daily Market Movers: Australian Dollar loses ground due to risk aversion.
Australia’s Westpac Consumer Confidence fell 1.8% to 84.4 in March 2024 from 86.0 in February, falling off 20-month highs.
In February, Australia’s Westpac Leading Index (MoM) rose 0.1%. Compared to a 0.09% fall the previous month.
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.
At the Boao Forum for Asia (BFA), China’s top legislator, Zhao Leji, underlined China’s commitment to inclusive economic globalization. He emphasized that China is opposed to all types of unilateralism and protectionism and is dedicated to closely coordinating its growth with that of other countries.
Despite persistent inflation figures, Federal Reserve Board Governor Christopher Waller believes there is ‘no rush’ to decrease interest rates. .
Atlanta Fed President Raphael Bostic stated that he expects only one rate decrease this year, warning that lowering rates early could cause more disruption.
Fed Governor Lisa Cook warned against reducing policy too soon, saying it could increase the risk of inflation becoming entrenched.
Chicago Fed President Austan Goolsbee, who leans dovish, expects three cuts but says more evidence of inflation decreasing is needed before taking action.
US durable goods orders climbed by 1.4%, compared to the predicted 1.3%.
In February, US durable goods orders climbed by 1.4%, compared to the predicted 1.3% and a previous decrease of 6.9%.
US Durable Goods Orders excluding Defense increased by 2.2% in February, contrasting to the predicted 1.1% and 7.9% declines in the preceding months.
In January, the US Housing Price Index (MoM) declined by 0.1%, compared to the increase in December 0.1%.
