The post Australian Dollar finished the week at highs since January as markets bet on a dovish Fed appeared on BitcoinEthereumNews.com.

AUD/USD remains at highest level since January near 0.6800. Hot PPI data didn’t stop the pair in its upward trend. Monetary policy divergence between RBA and Fed stir the pair. The Australian Dollar (AUD) upheld its positive trajectory against the USD in Friday’s session, rising by 0.30% to 0.6780. The AUD resumed its gains with market participants adjusting their stakes on the Federal Reserve (Fed) after the release of US inflation figures. Hot Producer Price Index (PPI) figures form the US didn’t trigger a recovery in the Greenback. The Reserve Bank of Australia (RBA) is poised to be among the last G10 nations’ central banks to initiate rate cuts, a factor that could extend the AUD’s gains. Daily market movers: AUD may extend gains as RBA delays cuts and markets grow confident in a more dovish Fed On the economic data front, the Producer Price Index (PPI) for final demand in the US rose 2.6% YoY in June, according to data published by the US Bureau of Labor Statistics on Friday. This result was higher than the forecasted 2.3%, surpassing the previous 2.2% rise in May. Core PPI also exceeded market expectations at 3%. However, sentiment data from the University of Michigan came in below expectation at 66.0, compared to the predicted 68.5 and the previous 68.2. CME Fedwatch Tool predicts more than 80% chance for 25 bps cut in September. On the other hand, speculation is growing that RBA might delay the global rate-cutting cycle or even raise interest rates again as a result of high inflation in Australia. This view compels RBA to maintain its hawkish stance. Furthermore, China, one of Australia’s closest trade partners, has announced its Trade Balance data for June showing a trade surplus of $99.05 billion, a significant increase from the previous figure of…

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Filed under: News - @ July 13, 2024 8:22 pm