Breaking news
- AUD/USD recovers its intraday losses following the release of China Trade Balance data.
- China’s Trade Balance increased to CNY 649.34 billion in August, from the outdated reading of CNY 601.90 billion.
- The US Dollar got toughen as fresh labor data diminished the chance of an aggressive Fed rate cut in September.
The AUD/USD pair gained floor after the release of China’s Trade Balance data on Tuesday. Nonetheless, the Australian Dollar (AUD) faced challenges against the US Dollar (USD) following the downbeat Westpac User Self assurance.
Additionally, the AUD/USD pair faced challenges as the US Dollar got toughen as a fresh US labor market document raised uncertainty over the chance of an aggressive interest rate cut by the Federal Reserve (Fed) at its September meeting.
China’s Trade Balance reported a trade surplus of CNY 649.34 billion for August, increasing from the outdated reading of CNY 601.90 billion. Meanwhile, China’s Exports (CNY) increased by 8.4% year-on-year, following the outdated upward thrust of 6.5%.
Australia’s Westpac User Self assurance fell by 0.5% month-on-month in September, swinging from a 2.8% gain in August. Traders await China’s Trade Balance data scheduled to be released later in the day. Given the shut trade relationship between Australia and China, any changes in the Chinese economy may have a significant impact on Australian markets.
Breaking news Daily Digest Market Movers: Australian Dollar extends decline because of increasing threat aversion
- According to the CME FedWatch Software, markets are totally anticipating at least a 25 basis point (bps) rate cut by the Federal Reserve at its September meeting. The chance of a 50 bps rate cut has a little bit decreased to 29.0%, down from 30.0% a week ago.
- China’s User Tag Index (CPI) rose by 0.6% year-on-year in August, up from 0.5% in July but below the market consensus of 0.7%. On a monthly basis, CPI inflation increased by 0.4% in August, down from 0.5% in July and worse than the 0.5% estimate.
- RBC Capital Markets now expects the Reserve Bank of Australia to implement a rate cut at its February 2025 meeting, earlier than its outdated forecast of May 2025. Despite inflation in Australia remaining elevated above the RBA’s target, slower financial increase is no longer idea-about a ample reason for a rate cut this year.
- The US Bureau of Labor Statistics (BLS) reported that Nonfarm Payrolls (NFP) added 142,000 jobs in August, below the forecast of 160,000 but an development from July’s downwardly revised pick of 89,000. Meanwhile, the Unemployment Rate fell to 4.2%, as expected, down from 4.3% in the outdated month.
- Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee remarked on Friday that Fed officials are starting to align with the broader market’s sentiment that a policy rate adjustment by the US central bank is impending, according to CNBC. FXStreet’s FedTracker, which makes employ of a customized AI model to evaluate Fed officials’ speeches on a dovish-to-hawkish scale from 0 to 10, rated Goolsbee’s comments as dovish, assigning them a rating of three.2.
Breaking news Technical Analysis: Australian Dollar tests 0.6650 near the lower boundary of descending channel
The AUD/USD pair trades around 0.6650 on Tuesday. The daily chart analysis reveals that the pair is trekking down along the lower boundary of the descending channel, suggesting the reinforcing of a bearish bias. Additionally, the 14-day Relative Energy Index (RSI) falls below the 50 stage, confirming the continuing bearish trend for the AUD/USD pair.
On the draw back, the AUD/USD pair targets the lower boundary of the descending channel around the stage of 0.6630. A break below this stage may toughen the bearish bias and lead the pair to navigate the state around the throwback toughen at 0.6575.
Regarding resistance, the AUD/USD pair may regain the barrier around the nine-day Exponential Shifting Average (EMA) at the 0.6703 stage. A breakthrough above this stage may weaken the bearish bias and toughen the AUD/USD pair to ascertain the upper boundary of the descending channel around the 0.6750 stage, followed by a seven-month high of 0.6798, reached on July 11.
AUD/USD: Daily Chart
Breaking news Australian Dollar PRICE Today
The table below reveals the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.01% | -0.06% | -0.03% | 0.04% | -0.11% | -0.11% | -0.15% | |
| EUR | 0.01% | -0.04% | 0.00% | 0.04% | -0.11% | -0.14% | -0.14% | |
| GBP | 0.06% | 0.04% | 0.02% | 0.05% | -0.06% | -0.10% | -0.08% | |
| JPY | 0.03% | 0.00% | -0.02% | 0.04% | -0.10% | -0.13% | -0.14% | |
| CAD | -0.04% | -0.04% | -0.05% | -0.04% | -0.16% | -0.15% | -0.18% | |
| AUD | 0.11% | 0.11% | 0.06% | 0.10% | 0.16% | -0.01% | -0.03% | |
| NZD | 0.11% | 0.14% | 0.10% | 0.13% | 0.15% | 0.01% | -0.01% | |
| CHF | 0.15% | 0.14% | 0.08% | 0.14% | 0.18% | 0.03% | 0.01% |
The heat map reveals percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the tip row. For example, even as you happen to make a determination the Australian Dollar from the left column and transfer along the horizontal line to the US Dollar, the percentage change displayed in the sphere will characterize AUD (base)/USD (quote).
Breaking news RBA FAQs
The Reserve Bank of Australia (RBA) objects interest rates and manages monetary policy for Australia. Selections 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 impress stability, which means an inflation rate of two-3%, but also “..to make a contribution to the stability of the currency, beefy employment, and the commercial prosperity and welfare of the Australian people.” Its main software for achieving here’s by raising or lowering interest rates. Relatively high interest rates will toughen the Australian Dollar (AUD) and vice versa. Other RBA tools include quantitative easing and tightening.
While inflation had always traditionally been even handed as a negative factor for currencies because it lowers the value of cash in general, the opposite has actually been the case nowa days with the relaxation of irascible-border capital controls. Moderately increased inflation now tends to lead central banks to place up their interest rates, which in flip has the make of attracting more capital inflows from global traders searching for a lucrative place to retain their cash. This increases demand for the local currency, which in the case of Australia is the Aussie Dollar.
Macroeconomic data gauges the health of an economy and can have an impact on the value of its currency. Investors pick on to make investments their capital in economies that are safe and rising rather than precarious and alarmed. Greater capital inflows increase the aggregate demand and value of the domestic currency. Classic indicators, such as GDP, Manufacturing and Services and products PMIs, employment, and particular person sentiment surveys can affect AUD. A solid economy may encourage the Reserve Bank of Australia to place up interest rates, also supporting AUD.
Quantitative Easing (QE) is a software musty in indecent situations when lowering interest rates is no longer ample to restore the fling of credit score in the economy. QE is the system whereby the Reserve Bank of Australia (RBA) prints Australian Dollars (AUD) for the motive of buying assets – usually executive or corporate bonds – from financial establishments, thereby providing them with great-vital liquidity. QE usually leads to a weaker AUD.
Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an financial recovery is underway and inflation starts rising. Even as in QE the Reserve Bank of Australia (RBA) purchases executive and corporate bonds from financial establishments to provide them with liquidity, in QT the RBA stops buying more assets, and stops reinvesting the principal maturing on the bonds it already holds. It may probably be positive (or bullish) for the Australian Dollar.
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