AUD/USD remains sideways below 0.6800 in countdown to Fed Powell’s speech
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AUD/USD consolidates below 0.6800 with Fed Powell’s speech in focus. Firm speculation for Fed rate cuts in September has resulted in cheerful market mood. Investors await the US Retail Sales and Aussie Employment for June. The AUD/USD pair consolidates below the crucial resistance of 0.6800 in Monday’s American session. The Aussie asset struggles for a direction as investors await Federal Reserve (Fed) Chair Jerome Powell’s speech, which is scheduled at 16:30 GMT. In his latest comments at semi-annual Congressional testimony on Tuesday-Wednesday last week, Powell admitted that the central bank has made some progress on inflation. However, he reiterated the need of soft inflation data for months to gain confidence for rate cuts. The commentary from Fed Powell is expected to be favoring early cuts as the Consumer Price Index (CPI) report for June, released on Thursday, showed that price pressures have softened further. Meanwhile, firm market speculation for the Fed to begin reducing interest rates from September has improved appeal for risk-sensitive assets. Considering strong gains in overnight futures, the S&P 500 is expected to open on a strong bullish note. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, struggles to hold the immediate support of 104.00. This week, investors will focus on the United States (US) Retail Sales data for June, which will be published on Tuesday. The Retail Sales data, a measure to consumer spending that drives consumer inflation, is estimated to have remained unchanged on month-on-month. On the Aussie front, investors will focus on the Australian Employment data for June, which will be published on Thursday. The Employment report is expected to show that 20K job-seekers were hired against 39.7K onboarded in May. The Unemployment Rate is expected to remain steady at 4.0%. Signs of strong job demand would boost…
Filed under: News - @ July 15, 2024 7:20 pm