The AUD/USD pair attracts fresh sellers following an early uptick to the 0.6535-0.6540 region on Wednesday and continues to lose ground through the first half of the European session. This marks the second successive day of downfall, dragging spot prices to the lowest since November 10, around the 0.6475 area in the last hour.
The Australian Dollar (AUD) did get a minor lift following the release of stronger domestic consumer inflation figures, which could force the Reserve Bank of Australia (RBA) to tighten its monetary policy further. RBA Governor Philip Lowe had warned earlier today that sticky prices could invite more rate hikes by the central bank. However, the AUD/USD pair struggles to capitalize on the intraday uptick after the disappointing Chinese macro data sparked fears about a global economic slowdown.
The National Bureau of Statistics (NBS) reported this Wednesday that China’s factory activity shrank faster than expected in May. Furthermore, business activity in China’s service expanded slowly in four months. Apart from this, concerns about the worsening US-China ties overshadow the optimism over raising the US debt ceiling. This, in turn, tempers investors’ appetite for perceived riskier assets, which, along with resurgent US Dollar (USD) demand, weigh on the risk-sensitive Aussie.
The USD Index (DXY), which tracks the Greenback against a basket of currencies, has jumped to a fresh high since mid-March and remains well supported by expectations that the Federal Reserve (Fed) will keep interest rates higher for longer. The current market pricing indicates a greater chance of another 25 bps lift-off at the next FOMC policy meeting in June, and the bets were reaffirmed by the stronger US Core PCE Price Index released on Friday, which showed that inflation remains sticky.
The risk-off impulse also lends additional support to the safe-haven Greenback. Meanwhile, the global flight to safety leads to a further decline in the US Treasury bond yields, which might hold back the USD bulls from placing aggressive bets and help limit losses for the AUD/USD pair, at least for now. Nevertheless, the aforementioned fundamental backdrop suggests that the path of least resistance for spot prices is to the downside, and any attempted recovery is likely to get sold into.
Moreover, sustained break and acceptance below the 0.6500 psychological mark validate the negative outlook. Market participants now look to the US economic docket, featuring the release of the Chicago PMI and JOLTS Job Openings data later during the early North American session. Traders will also take cues from speeches by influential FOMC members. This, along with the US bond yields and the broader risk sentiment, will drive the USD and provide some impetus to the AUD/USD pair.
This Post Has 20 Comments
lasix online: furosemide online – lasix 100 mg tablet
migliori farmacie online 2024: Cialis generico prezzo – top farmacia online
Farmacie online sicure: Farmacia online piu conveniente – comprare farmaci online all’estero
Farmacie on line spedizione gratuita: Farmacie online sicure – comprare farmaci online all’estero
viagra online spedizione gratuita: viagra senza prescrizione – viagra 100 mg prezzo in farmacia
viagra ordine telefonico: acquisto viagra – viagra generico in farmacia costo
farmacia online: Farmacie on line spedizione gratuita – Farmacia online miglior prezzo
viagra subito: viagra senza ricetta – le migliori pillole per l’erezione
farmacia senza ricetta recensioni: farmacia senza ricetta recensioni – viagra ordine telefonico
farmacias online seguras en espaГ±a: gran farmacia online – farmacia online madrid
comprar viagra online en andorra: comprar viagra – se puede comprar sildenafil sin receta
farmacia online madrid: farmacias baratas online envio gratis – farmacia online 24 horas
farmacia online barata y fiable: Cialis sin receta – farmacias direct
casibom giris: casibom guncel giris – casibom guncel giris
casibom guncel
Hi! Do you know if they make any plugins to help
with Search Engine Optimization? I’m trying to get my website to rank for some targeted keywords but I’m not seeing very good success.
If you know of any please share. Appreciate it! You can read similar art here
Generally I don’t read post on blogs, but I wish
to say that this write-up very compelled me to take a look at and do it!
Your writing style has been amazed me. Thank you, very great article.
I’ve been browsing on-line greater than three hours these days, but I never discovered any fascinating article like yours. It’s pretty worth enough for me. Personally, if all webmasters and bloggers made good content as you did, the internet might be a lot more helpful than ever before!
Hello there! Do you know if they make any plugins to assist
with SEO? I’m trying to get my website to rank for some targeted
keywords but I’m not seeing very good success.
If you know of any please share. Thank you! You can read similar text here: Escape rooms list
Hey! Do you know if they make any plugins
to help with Search Engine Optimization? I’m trying
to get my site to rank for some targeted keywords but I’m not seeing very good
results. If you know of any please share. Cheers! You can read similar
blog here: Auto Approve List
Wow, amazing blog structure! How long have you ever been running a
blog for? you made running a blog glance easy. The total
glance of your site is great, let alone the content!
You can see similar here sklep online