Created
: 2024.09.27
2024.09.27 17:51
The AUD/USD pair oscillates in a narrow trading band below the 0.6900 mark through the first half of the European session on Friday and remains close to its highest level since February 2023 touched earlier this week.
The US Dollar (USD) attracts some buyers ahead of the US Personal Consumption Expenditure (PCE) Price Index and turns out to be a key factor acting as a headwind for the AUD/USD pair. That said, bets for another oversized interest rate cut by the Federal Reserve (Fed) in November hold back the USD bulls from placing aggressive bets. Apart from this, the upbeat market mood caps the safe-haven buck and lends some support to the risk-sensitive Aussie.
The global risk sentiment gets an additional boost after the People's Bank of China (PBOC) cut the seven-day repo rate to 1.5% from 1.7% and lowered the Reserve Requirement Ratio (RRR) by 50 bps. This comes on top of a slew of stimulus measures announced this week, which continues to fuel the risk-on rally across the global equity markets and underpins the China-proxy Australian Dollar (AUD) amid the Reserve Bank of Australia's (RBA) hawkish stance.
In fact, the Australian central bank reiterated on Tuesday that policy will need to be restrictive until confidence returns that inflation is moving sustainably towards the target range. Adding to this, RBA Governor Michele Bullock stated that the recent data has not significantly influenced the policy outlook. This, in turn, suggests that the path of least resistance for the AUD/USD pair is to the upside and supports prospects for an extension of over a two-week-old rally.
The Personal Consumption Expenditures (PCE), released by the US Bureau of Economic Analysis on a monthly basis, measures the changes in the prices of goods and services purchased by consumers in the United States (US). The YoY reading compares prices in the reference month to a year earlier. Price changes may cause consumers to switch from buying one good to another and the PCE Deflator can account for such substitutions. This makes it the preferred measure of inflation for the Federal Reserve. Generally, a high reading is bullish for the US Dollar (USD), while a low reading is bearish.
Read more.Next release: Fri Sep 27, 2024 12:30
Frequency: Monthly
Consensus: 2.3%
Previous: 2.5%
Source: US Bureau of Economic Analysis
Created
: 2024.09.27
Last updated
: 2024.09.27
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy