The post Australian Dollar steady as markets await Fed decision appeared on BitcoinEthereumNews.com.

AUD/USD regains ground ahead of FOMC, while the USD consolidates losses. Chinese data concerns weigh on the AUD. Hawkish RBA keeps the Aussie afloat on Tuesday. The AUD/USD has regained ground in Tuesday’s session and has attracted some follow-through buyers, climbing to a nearly two-week high of 0.6755. The Australian Dollar is feeling the effect of consolidating losses by the US Dollar, as well as concerns about economic data coming from China. Furthermore, a positive risk tone has undermined the USD, adding to the AUD/USD’s gains. Due to conflicting economic signals and the Reserve Bank of Australia’s (RBA) strict stance on inflation, the market’s expectations for interest rate cuts have been scaled back. Market watchers now anticipate only a modest 25-basis-point reduction in 2024, reflecting a more cautious outlook on the Australian economy. On Tuesday, the US released Retail Sales data from August that didn’t impact the USD but did surpass expectations as the focus is set on Wednesday’s Fed decision.  Daily digest market movers: Australian Dollar steady ahead of Fed US Dollar consolidates recent losses on bets for a 50 bps rate cut by the Fed. RBA’s hawkish outlook supports the risk-sensitive Australian Dollar. Fundamental backdrop favors the AUD, but concerns about China’s economic slowdown could act as a headwind. Soft Retail Sales data from the US had little market reaction though US data may be limited as focus remains on Fed interest rate decision come Wednesday. Fed is expected to cut interest rates by 25 bps, according to analysts, but a 50 bps cut remains more likely, according to CME FedWatch Tool. A smaller-than-expected rate cut could boost the US Dollar and weigh on the AUD. A dovish Fed stance could benefit the AUD, while a hawkish stance could bolster the USD. AUD/USD technical outlook: Pair extends gains…

---

Filed under: News - @ September 17, 2024 10:22 pm