Australian Dollar depreciates as the US Dollar edges higher due to increased risk aversion
The post Australian Dollar depreciates as the US Dollar edges higher due to increased risk aversion appeared on BitcoinEthereumNews.com.
The Australian Dollar loses ground despite the hawkish RBA’s policy outlook. The AUD inches lower as the US Dollar appreciates amid less-dovish sentiment surrounding the Fed. CME FedWatch Tool suggests a 97% chance of a 25-basis-point rate cut by the Fed in November. The Australian Dollar (AUD) edged lower against the US Dollar (USD) on Thursday. However, the AUD/USD pair saw some gains as the US Dollar (USD) softened slightly due to a modest decline in US Treasury yields. Traders are also closely observing the Reserve Bank of Australia’s (RBA) annual report. The Aussie Dollar could benefit from the hawkish tone surrounding the RBA. Earlier this week, RBA Deputy Governor Andrew Hauser highlighted the country’s strong labor participation rate and stressed that, although the RBA relies on data, it is not overly fixated on it. The US Dollar strengthens as traders closely monitor the Federal Reserve’s (Fed) interest rate path, with growing expectations that the central bank will not lower rates as aggressively as previously anticipated. This shift in sentiment follows the release of strong economic data, which suggests that the US economy remains resilient and may support a more cautious approach to rate cuts. According to the CME FedWatch Tool, there is a 97% probability of a 25-basis-point rate cut by the Fed in November, with no expectation of a larger 50-basis-point cut. Daily Digest Market Movers: Australian Dollar depreciates despite a hawkish RBA’s stance S&P Global has released its preliminary October US Purchasing Managers Index (PMI) readings, showing positive momentum across sectors. The Composite PMI rose to 54.3, up from the previous 54.0. The Services PMI exceeded expectations at 55.3, compared to the forecasted 55.0, and saw a slight increase from the previous 55.2. Meanwhile, the Manufacturing PMI also came in stronger at 47.8, above the expected 47.5,…
Filed under: News - @ October 25, 2024 2:16 am