Australian Dollar gains ground due to risk-on mood, awaits Fed Powell testimony
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The Australian Dollar advances as a ceasefire has been agreed upon between Iran and Israel. The upbeat S&P Global Australia PMI data dampened expectations of the RBA cutting interest rates anytime soon. Fed’s Michelle Bowman stated that the time to cut interest rates is approaching. The Australian Dollar (AUD) appreciates against the US Dollar (USD) on Tuesday, extending its gains for the second successive session. The AUD/USD pair gains ground after US President Donald Trump said a ceasefire has been agreed upon between Iran and Israel. Trump said that a “complete and total” ceasefire between Israel and Iran will go into effect to end the conflict between the two nations. Iran fired missiles at the Al Udeid Air Base in Qatar on Monday. Qatar officials said that the missile barrage was intercepted and that the base had been evacuated in advance. Trump announced late Saturday that he had “obliterated” Iran’s three nuclear facilities, including Fordow, Natanz, and Isfahan, in strikes overnight. Iranian parliament approved a measure to close the Strait of Hormuz. The latest upbeat S&P Global Purchasing Managers Index (PMI) data revealed that Australia’s private sector grew at its second-fastest pace in ten months, weakening short-term rate cut expectations by the Reserve Bank of Australia (RBA). Traders will likely observe Fed Chair Jerome Powell, who is scheduled to testify before the US Congress on Tuesday and Wednesday, in search of clues about the future direction of interest rates. Australian Dollar appreciates as the US Dollar holds losses amid improved market sentiment The US Dollar Index (DXY), which measures the value of the US Dollar against six major currencies, is trading at around 98.20 at the time of writing. The Greenback faced challenges following the dovish remarks from the Federal Reserve (Fed) officials. Fed’s Vice Chair for Supervision Michelle Bowman…
Filed under: News - @ June 24, 2025 7:25 am