Breaking news
- Australian Dollar recovers intraday losses regardless of decrease ASX 200 Index on Wednesday.
- Australian GDP (QoQ) grew by 0.2%, a small bit below the expected 0.3% within the fourth quarter of 2023.
- US ISM Products and companies PMI declined to 52.6 against the forecasted Fifty three.0 for February.
- US Dollar gains floor on greater US Treasury yields.
The Australian Dollar (AUD) recovers intraday losses regardless of a softer GDP on Wednesday. Then again, the AUD faced downward tension at some point of early Asian hours amid a weaker fairness market. The S&P/ASX 200 Index has declined for 3 consecutive classes, mirroring the sell-off in abilities stocks on Wall Facet road and decrease mining stocks.
Australian Dollar remained largely unaffected by the softer-than-expected Disagreeable Domestic Product (GDP) data. The GDP grew by 0.2% quarter-on-quarter within the fourth quarter of 2023, a small bit below market expectations of no change at 0.3%. Then again, on a year-on-year basis, GDP expanded by 1.5%, surpassing the expected 1.4%, however falling short of the previous increase of two.1%.
The Reserve Bank of Australia (RBA) continues to observe the economic system for indicators of a slowdown, aiming to bring inflation back to target. It anticipates a additional moderation in economic increase to 1.3% by June 2024.
The US Dollar Index (DXY) attempts to halt its three-day losing streak, buoyed by the restoration in US Treasury yields ahead of Federal Reserve (Fed) Chairman Jerome Powell’s testimony ahead of the US Congress’ Home Financial Products and companies Committee scheduled for Wednesday and Thursday. Then again, the US Dollar (USD) faces downward tension following softer-than-expected data from the US ISM Products and companies Purchasing Managers Index (PMI). ADP Employment Change for February shall be eyed on Wednesday.
Breaking news Daily Digest Market Movers: Australian Dollar improves on threat-on sentiment
- AiG Trade Index reported a print of -14.9 for January, compared to the -27.3 prior.
- AiG Improvement PMI prolonged its contraction, declining to -18.4 from the previous reading of -11.5.
- AiG Manufacturing PMI posted a reading of -12.6 against the previous contraction of -23.8.
- Judo Bank Products and companies PMI surged to a ten-month high of Fifty three.1 in February. This increase pushed the index above the 50.0 threshold, indicating expansion, and surpassed the previous reading of 49.1.
- Judo Bank Composite PMI rose to 52.1 compared to the previous 49.0, marking a 9-month high.
- Australian Contemporary Account Balance rose to 11.8 billion within the fourth quarter of 2023, against the expected 5.6 billion and 1.3 billion prior.
- ANZ-Roy Morgan Australian User Self assurance index declined to 81.0, from the previous reading of 83.2. This latest resolve represents the lowest level recorded thus far in 2024.
- Australia Melbourne Institute Inflation for February confirmed a year-over-year upward push of 4.0%, decrease than the previous upward push of 4.6%.
- Commerzbank economists anticipate that the Reserve Bank of Australia (RBA) will delay rate cuts, offering make stronger for the Australian Dollar (AUD) for the time being. They attain now no longer foresee an imminent slowdown within the Australian economic system. Then again, if clear indications of a slowdown emerge, presumably signaling a recession, the RBA may adjust its monetary policy stance sooner.
- According to Matthew De Pasquale, an Economist at Judo Bank, the February Products and companies PMI suggests that the field has achieved a comfortable landing in 2023 and is now witnessing a resurgence in activity in early 2024. Whereas the resilience in industry activity bodes well for economic increase and employment, it casts doubt on the chance of inflation returning to target all via the Reserve Bank of Australia’s forecast timeline.
- Old New York Fed economist Steven Friedman eminent that Federal Reserve policymakers are vulnerable to remain cautious about cutting passion rates this year as a result of stable increase and volatile inflation. He expected the opportunity of fewer than the three cuts anticipated for 2024.
- Atlanta Federal Reserve (Fed) President Raphael Bostic made headlines on Monday, expressing uncertainty about achieving a comfortable landing. He does now no longer foresee consecutive rate cuts when they inaugurate however expects two 25-basis point rate cuts in 2024. Whereas inflation is anticipated to approach to the 2% target, Bostic believes it’s premature to declare victory.
- According to the CME FedWatch Software, there may be a 4.0% probability of a 25 basis formula rate scale back in March, whereas the chance of cuts in May and June stands at 23.9% and Fifty three.3%, respectively.
- ISM Products and companies PMI declined to 52.6 in February, against the forecasted downtick to Fifty three.0 from Fifty three.4.
- Factory Orders (MoM) decreased by 3.6% in January, exceeding the expected fall of two.9%.
- S&P Global Composite PMI (Feb) increased to 52.5 from the previous reading of 51.4.
- US ISM Manufacturing PMI (Feb) dropped to 47.8 from 49.1, surprisingly lacking the market expectation 49.5.
- The US Michigan User Sentiment Index declined to 76.9 in February, falling below the market expectation of remaining unchanged at Seventy 9.6.
- US Personal Consumption Expenditure (PCE) Price Index grew by 2.4% YoY in January, against the 2.6% prior, based on the market expectation. The index increased by 0.3% month-over-month, against 0.1% prior.
Breaking news Technical Analysis: Australian Dollar moves above the psychological level of 0.6500
The Australian Dollar traded around 0.6490 on Wednesday. Immediate resistance is eminent near the psychological level of 0.6500. A break above this level may make stronger the AUD/USD pair to reach the 21-day Exponential Shifting Average (EMA) at 0.6529, adopted by the 23.6% Fibonacci retracement level at 0.6543 and the major level of 0.6550. On the draw back, key make stronger is seen at the previous week’s low at 0.6486. If breached, the pair may target the area around the major make stronger level of 0.6450 and February’s low at 0.6442.
Breaking news AUD/USD: Daily Chart
Breaking news Australian Dollar trace today
The table below presentations the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.03% | 0.04% | -0.06% | -0.15% | -0.04% | -0.04% | 0.07% | |
| EUR | -0.03% | -0.01% | -0.08% | -0.17% | -0.07% | -0.05% | 0.06% | |
| GBP | -0.03% | 0.01% | -0.08% | -0.16% | -0.06% | -0.05% | 0.07% | |
| CAD | 0.06% | 0.10% | 0.07% | -0.09% | 0.01% | 0.03% | 0.15% | |
| AUD | 0.15% | 0.19% | 0.17% | 0.08% | 0.10% | 0.11% | 0.23% | |
| JPY | 0.04% | 0.07% | 0.06% | -0.02% | -0.09% | 0.01% | 0.10% | |
| NZD | 0.03% | 0.06% | 0.04% | -0.03% | -0.12% | -0.01% | 0.13% | |
| CHF | -0.09% | -0.06% | -0.07% | -0.15% | -0.23% | -0.13% | -0.11% |
The heat map presentations percentage changes of major currencies against each varied. The base currency is picked from the left column, whereas the quote currency is picked from the tip row. For example, if you happen to pick out out the Euro from the left column and transfer along the horizontal line to the Japanese Yen, the percentage change displayed within the field will relate EUR (base)/JPY (quote).
Breaking news RBA FAQs
The Reserve Bank of Australia (RBA) objects passion rates and manages monetary policy for Australia. Decisions are made by a board of governors at 11 conferences a year and ad hoc emergency conferences as required. The RBA’s primary mandate is to maintain trace stability, which means an inflation rate of two-3%, however also “..to make contributions to the stability of the currency, stout employment, and the commercial prosperity and welfare of the Australian of us.” Its main software for achieving that is by raising or decreasing passion rates. Relatively high passion rates will fortify the Australian Dollar (AUD) and vice versa. Varied RBA instruments consist of quantitative easing and tightening.
Whereas inflation had always traditionally been view of as a negative factor for currencies because it lowers the value of cash in general, the reverse has actually been the case in as a lot as date instances with the relaxation of ghastly-border capital controls. Moderately greater inflation now tends to lead central banks to assign up their passion rates, which in flip has the achieve of attracting extra capital inflows from global investors making an attempt for a lucrative place to maintain their cash. This increases demand for the local currency, which within the case of Australia is the Aussie Dollar.
Macroeconomic data gauges the health of an economic system and can have an impact on the value of its currency. Investors want to take a position their capital in economies that are safe and increasing rather than precarious and fearful. Greater capital inflows increase the aggregate demand and value of the home currency. Classic indicators, such as GDP, Manufacturing and Products and companies PMIs, employment, and person sentiment surveys can affect AUD. A stable economic system may encourage the Reserve Bank of Australia to assign up passion rates, also supporting AUD.
Quantitative Easing (QE) is a software feeble in vulgar situations when decreasing passion rates is now no longer satisfactory to revive the float of credit ranking within the economic system. QE is the path of in which the Reserve Bank of Australia (RBA) prints Australian Dollars (AUD) for the just of procuring assets – usually executive or corporate bonds – from financial institutions, thereby offering them with mighty-needed liquidity. QE usually results in a weaker AUD.
Quantitative tightening (QT) is the reverse of QE. It is miles undertaken after QE when an economic restoration is underway and inflation starts rising. Even as in QE the Reserve Bank of Australia (RBA) purchases executive and corporate bonds from financial institutions to give them with liquidity, in QT the RBA stops procuring for extra assets and stops reinvesting the principal maturing on the bonds it already holds. It may be certain (or bullish) for the Australian Dollar.
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