AUDUSD maintains daily low with negative sentiment and conflicting data.
As market jitters increase in the early hours of Wednesday, the Aussie (AUDUSD)accepts bids to recover its intraday low at 0.7040.
Despite increasing in January, the China Caixin PMI remains below the threshold of 50.0.
The industrial group’s report on Chinese activities may strengthen the retreat actions. Despite this, China’s Caixin Manufacturing PMI increased from 49.0 to 49.2 but declined below 49.5 market expectations. Additionally, the six straight months of readings below 50 strengthen the gloomy sentiment against Australia’s largest client. In other places, Marion Kohler, the RBA’s Head of the Economic Analysis Department, stated that the bank thinks inflation peaked in Q4 of 2022.
Mixed fears about the RBA’s future move weigh on Aussie(AUDUSD) prices, particularly in light of the rising inflation and disappointing Retail Sales.
The RBA, on the other hand, is expected to deliver a series rate rises and maintain hawkish guidance over the next year, according to James Glynn of the Wall Street Journal (WSJ).
the monetary policy meeting this week. As traders get ready for today’s crucial Federal Open Market Committee (FOMC) monetary policy meeting amid subsiding worries of inflation and lingering economic troubles. it should be noted that market mood deteriorates following positive data.
Risk-barometer Aussie(AUDUSD) may be impacted by a cautious attitude prior to the Fed’s decision.
The fact that Fed Chair Jerome Powell is willing to defend the recent aggressive rate rises despite the recent inflation forecasts being negative adds intrigue to today’s Fed meeting. In this environment, the S&P 500 Futures registers modest losses as the US Treasury bond rates remain low and hold the decline from the previous day.
In spite of this, at 102.15, the US Dollar Index (DXY) begins to get bids to recover from Tuesday’s losses. Moving on, the Fed has already announced a rate increase of 0.25%, but Powell’s speech will be important.
