The Australian dollar has started the week with slight gains, after sliding 0.86% on Friday. In the European session, AUD/USD is trading at 0.6530, up 0.24%.
PBoC move sends Aussie sharply lower
The Australian dollar ended the week with sharp losses after China’s central bank set the daily fixing of the Chinese yuan lower than expected on Friday. The PBoC weakened the yuan in order to boost China’s struggling economy and the move led to an AUD/USD sell-off on Friday. China is Australia’s number one trading partner, and currency interventions such as the PBoC move can have a major impact on the Australian dollar.
It’s a light day on the data calendar, which means we can expect a quiet day for AUD/USD. The only tier-1 event is US New Home Sales, which is expected to rise to 680,000 in February, up from 661,000 in January.
Australia releases Westpac Consumer Sentiment on Tuesday, with the markets braced for a decline of 1.6% for March. This follows a sparkling 6.2% gain in February, as consumer confidence climb sharply after the Reserve Bank of Australia held interest rates earlier in February. Consumers expressed optimism that the RBA had winded up its rate-tightening cycle.
In the US, the markets have high hopes for three rate cuts this year, and the Fed’s “dot plot” projection at last week’s meeting also projected three cuts this year. However, Atlanta Federal Reserve bank President Raphael Bostic dampened the mood on Friday when he said that he expects only one quarter-point cut this year. Bostic said that he was “definitely less confident than I was in December” that inflation will continue to drop towards the 2% target.
Ubuchwepheshe be-AUD / USD
- AUD/USD is testing resistance at 0.6534. Above, there is resistance at 0.6558
- Kukhona usekelo ku-0.6490 naku-0.6466
Okuqukethwe okwezinjongo zolwazi olujwayelekile kuphela. Akusona iseluleko sokutshala izimali noma isixazululo sokuthenga noma ukuthengisa izibambiso. Imibono ngababhali; hhayi ngempela eye-OANDA Business Information & Services, Inc. nanoma yiziphi izinhlaka zayo, izinkampani ezingaphansi kwayo, izikhulu noma abaqondisi. Uma ungathanda ukukhiqiza kabusha noma ukusabalalisa kabusha noma yikuphi okuqukethwe okutholakala ku-MarketPulse, i-forex ewina umklomelo, impahla kanye nokuhlaziywa kwezinkomba zomhlaba jikelele kanye nensizakalo yesayithi yezindaba ekhiqizwe yi-OANDA Business Information & Services, Inc., sicela ufinyelele okuphakelayo kwe-RSS noma usithinte ku- [i-imeyili ivikelwe]. Vakashela https://www.marketpulse.com/ ukuze uthole okwengeziwe mayelana nokushaya kwezimakethe zomhlaba. © 2023 OANDA Business Information & Services Inc.
- I-SEO Powered Content & PR Distribution. Khuliswa Namuhla.
- I-PlatoData.Network Vertical Generative Ai. Zinike Amandla. Finyelela Lapha.
- I-PlatoAiStream. I-Web3 Intelligence. Ulwazi Lukhulisiwe. Finyelela Lapha.
- I-PlatoESG. Ikhabhoni, I-CleanTech, Amandla, Environment, Ilanga, Ukuphathwa Kwemfucuza. Finyelela Lapha.
- I-PlatoHealth. I-Biotech kanye ne-Clinical Trials Intelligence. Finyelela Lapha.
- Source: https://www.marketpulse.com/news-events/central-banks/australian-dollar-stabilizes-consumer-sentiment-next/kfisher