The post Australian Dollar holds ground due to risk-on market sentiment, China’s measures appeared on BitcoinEthereumNews.com.

The Australian Dollar receives support from improved market sentiment and strong commodity prices. The AUD gained ground from robust trade data from China and Beijing’s initiatives to stabilize the Yuan. The US Dollar depreciated following the disappointing December US Producer Price Index data. The Australian Dollar (AUD) holds steady on Wednesday after two consecutive days of gains against the US Dollar (USD). The AUD/USD pair benefited from risk-on market sentiment, supported by strong trade data from China, Beijing’s efforts to stabilize the Yuan, and rising commodity prices. Traders are awaiting Australian employment data, scheduled for release later this week, for further insights into the Reserve Bank of Australia’s (RBA) policy direction. Investor confidence grew as US President-elect Donald Trump’s economic team considered a gradual increase in import tariffs. This optimism bolstered risk-sensitive currencies like the AUD and contributed to the appreciation of the AUD/JPY pair. Traders assessed data revealing a second consecutive monthly decline in consumer confidence, likely driven by the Australian Dollar’s depreciation against the US Dollar. In January 2025, Australia’s Westpac Consumer Confidence Index dropped by 0.7% to 92.1 points, reflecting ongoing consumer pessimism. The decline in consumer confidence sparked concerns about the outlook for interest rates and Australia’s broader economic health. Markets are now pricing in a 67% likelihood that the Reserve Bank of Australia will lower its 4.35% cash rate by 25 basis points in February, with a full rate cut expected by April. Australian Dollar gains ground as US Dollar depreciates following PPI data The US Dollar Index (DXY), which measures the US Dollar’s performance against six major currencies, trades near 109.20. The Greenback faced challenges following the disappointing US December Producer Price Index (PPI) data. Market participants will keep an eye on the US Consumer Price Index (CPI) inflation data, which is due later…

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Filed under: News - @ January 15, 2025 2:27 am