Australian Dollar continues to lose ground after Westpac Consumer Confidence
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AUD/USD depreciates following the release of downbeat Westpac Consumer Confidence on Tuesday. The Australian Dollar’s downside could be restrained due to the hawkish sentiment surrounding the RBA. The US Dollar received support as recent labor data reduced the likelihood of an aggressive Fed rate cut in September. The AUD/USD pair extends its losses for the third successive day following the downbeat Westpac Consumer Confidence from Australia released on Tuesday. Additionally, the US Dollar received support as a recent US labor market report raised uncertainty over the likelihood of an aggressive interest rate cut by the Federal Reserve (Fed) at its September meeting. Australia’s Westpac Consumer Confidence fell by 0.5% month-on-month in September, swinging from a 2.8% gain in August. Traders await China’s Trade Balance data scheduled to be released later in the day. Given the close trade relationship between Australia and China, any changes in the Chinese economy could have a significant impact on Australian markets. However, the downside of the Australian Dollar (AUD) could be limited due to the hawkish sentiment surrounding the Reserve Bank of Australia (RBA). The RBA Governor Michele Bullock stated last week that it is too early to consider rate cuts. The board does not anticipate being able to reduce rates in the near term. Daily Digest Market Movers: Australian Dollar extends decline due to increasing risk aversion According to the CME FedWatch Tool, markets are fully anticipating at least a 25 basis point (bps) rate cut by the Federal Reserve at its September meeting. The likelihood of a 50 bps rate cut has slightly decreased to 29.0%, down from 30.0% a week ago. China’s Consumer Price Index (CPI) rose by 0.6% year-on-year in August, up from 0.5% in July but below the market consensus of 0.7%. On a monthly basis, CPI inflation increased by…
Filed under: News - @ September 10, 2024 2:27 am