AUD/USD advances to 0.6300 neighborhood, closer to two-week top set on Monday
The post AUD/USD advances to 0.6300 neighborhood, closer to two-week top set on Monday appeared on BitcoinEthereumNews.com.
AUD/USD attracts buyers for the fourth successive day amid a modest USD downtick. The prospects for slower Fed rate cuts and elevated US bond yields favor the USD bulls. US-China trade war fears and the RBA’s dovish shift might cap the upside for the Aussie. The AUD/USD pair regains positive traction following the previous day’s pullback from the 0.6300 mark, or over a two-week top and builds on its steady intraday ascent through the first half of the European session on Tuesday. Spot prices currently trade around the 0.6285 region and draw support from a modest US Dollar (USD) downtick. The USD Index (DXY), which tracks the Greenback against a basket of currencies, languishes near a one-week low touched on Monday amid the uncertainty over US President-elect Donald Trump’s tariff plans. In fact, the Washington Post reported that Trump’s aides were exploring plans that would apply tariffs only on sectors seen as critical to US national or economic security. Trump, however, denied the report in a post on his Truth Social platform. This, in turn, keeps the USD bulls on the defensive and turns out to be a key factor acting as a tailwind for the AUD/USD pair. Meanwhile, the Federal Reserve (Fed) adopted a more hawkish stance at the end of the December policy meeting and signaled that it would slow the pace of rate cuts in 2025. The outlook remains supportive of elevated US Treasury bond yields, which, along with persistent geopolitical risks, should act as a tailwind for the safe-haven buck. Furthermore, concerns about a fresh round of US-China trade war and the Reserve Bank of Australia (RBA) dovish shift should cap the Aussie. This, in turn, might hold back traders from placing aggressive bullish bets around the AUD/USD pair. Investors might also opt to wait on…
Filed under: News - @ January 7, 2025 10:24 am