The post Australian Dollar rebounds as sellers take a breather, dovish RBA bets might limit the gains appeared on BitcoinEthereumNews.com.

Aussie finds some relief after mixed Australian PPI figures. Traders are keeping vigilance on job data disappointment from the US. Markets adjust their stance on the Reserve Bank of Australia’s monetary policy and now expect a cut in 2024. The Australian Dollar shows a minor recovery against the US Dollar (USD), which is experiencing a sharp drop after disappointing US jobs data. That being said, economic frailties in Australia and increasing rate cut expectations for the Reserve Bank of Australia (RBA) provide a limited upside for the Aussie. Despite high inflation, weaknesses in Australian economic activity have caused markets to amend their expectations from a rate hike to a rate cut from the RBA by the end of the year. Predictions now propose that the RBA will introduce a cut to tackle economic sluggishness, which could potentially limit further escalation for the Aussie. Daily digest market movers: Aussie gains ground despite increased RBA cut odds Australia’s Q2 Producer Price Index (PPI) unveiled this week displayed an increase of 4.8% YoY, a substantial leap from Q1’s 4.3%. This continued acceleration, hitting its highest point since Q1 of 2023, places the RBA under scrutiny to respond accordingly. With the market attributing an 80% chance of an RBA cut by year-end, the Aussie’s upside is limited. Across the Pacific, US Nonfarm Payrolls increased by 114K, far less than the predicted 175K. The Unemployment Rate climbed to 4.3% as compared to June’s 4.1%, and the Labor Force Participation Rate noted a marginal increase to 62.7% from the previous 62.6%. The Average Hourly Earnings report showed a drop from 3.8% to 3.6% YoY, which has affected the currency market adversely by adding weight to USD. In light of this data, the Federal Reserve (Fed) is expected to initiate interest rate reduction measures starting in September,…

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Filed under: News - @ August 3, 2024 7:18 pm