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The Australian Dollar appreciates as the tight labor market raises concerns about a potential rate hike from the RBA. The PBoC has cut one- and five-year loan prime rates by 10 basis points to 3.35% and 3.85%, respectively. US President Joe Biden announced that he will not seek re-election against former President Donald Trump. The Australian Dollar (AUD) halts its five-day losing streak on Monday. The AUD receives support as robust employment data indicate tight labor market conditions and raise concerns about a potential interest rate hike from the Reserve Bank of Australia (RBA). Investors look forward to Australian manufacturing and services PMI figures this week to gauge the health of the economy. The People’s Bank of China (PBoC) has cut one- and five-year loan prime rates by 10 basis points to 3.35% and 3.85%, respectively. Any change in the Chinese economy could impact the Australian markets as both countries are close trade partners. The decline of the US Dollar (USD) provides some support for the AUD/USD pair. The Greenback faces challenges as bets on a Federal Reserve (Fed) rate cut in September increase and concerns about the fragility of the US labor market persist. According to CME Group’s FedWatch Tool, markets now indicate a 91.7% probability of a 25-basis point rate cut at the September Fed meeting, up from 90.3% a week earlier. According to Reuters, markets are adjusting to a new US electoral landscape after President Joe Biden’s unexpected announcement on Sunday that he will no longer seek re-election against former President Donald Trump. Daily Digest Market Movers: Australian Dollar improves due to hawkish mood surrounding RBA China’s $715 billion hedge fund industry braces for increased pressure as new regulations take effect next month. These stricter guidelines will require funds to meet higher asset thresholds and more stringent…

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Filed under: News - @ July 22, 2024 2:08 am