The post AUD defends its gains as markets continue digesting RBA’s hold appeared on BitcoinEthereumNews.com.

AUD extends gains after RBA’s hawkish hold. Governor Bullock affirmed no immediate need for rate cuts. Investors digest Trade Balance data from China. The AUD/USD pair is currently trading around 0.6555, up by 0.50% on Wednesday. The Australian Dollar continues to gain strength from the Reserve Bank of Australia (RBA) holding rates steady on Tuesday. Governor Bullock maintained that there is no pressing need to cut rates, securing the Australian Dollar’s position. Due to the mixed Australian economic outlook and the RBA’s hawkish stance, markets are now pricing just 25 bps of easing in 2024. Daily digest market movers: AUD holds firm following RBA’s decision The Reserve Bank of Australia decisively held rates at 4.35%, reinforcing that “the Board is not ruling anything in or out.” The RBA also underlined the need for vigilance toward upside risks to inflation. The updated macro forecasts anticipate longer-lasting inflation, with trimmed mean and headline CPI inflation predicted to hit the midpoint of the 2-3% band by December 2026 as opposed to the June 2026 estimate from the May forecasts. Markets have reacted swiftly, now pricing in only 25 bps of easing by year-end. Governor Bullock clarified that “the Board did consider a rate rise” and that rate cuts are “not on the agenda in the near term.” She added that expectations for rate cuts are “a little ahead of themselves.” On the data front, China’s July Trade Balance, in terms of Chinese Yuan, was CNY601.98 billion, down from June’s CNY703.77 billion. The country’s imports rebounded by 6.6% YoY in July from -0.6% recorded in June, while exports rose by 6.5% YoY vs. 10.7% seen in June. It’s important to note that China is an important trade partner from Australia, and the Aussie is sensitive to Chinese data. AUD/USD technical analysis: Bulls step in…

---

Filed under: News - @ August 8, 2024 3:18 am