AUD:USD.png

The AUD/USD pair is still suffering from the Federal Reserve's monetary policy decision (Fed). Despite the Australian Bureau of Statistics' announcement of a substantial improvement in Employment Change data, the Australian dollar has continued to fluctuate around 0.6860. The Australian economy has created 64K new employment, compared to 19K anticipated and 32.2K previously. At 3.4%, the unemployment rate has stayed steady.

Earlier, 12-month Australian consumer inflation predictions decreased to 5.2% from 5.7% and 6.0% in the previous release. A significant drop in inflationary pressures will make the Reserve Bank of Australia happy (RBA). Philip Lowe, governor of the RBA, has been tightening monetary policy to slow the Consumer Price Index (CPI).

Notably, a decline in one-year inflation expectations will not prompt the RBA to abandon additional interest rate increases, given the path to achieving a 2% inflation rate is far from done. The RBA could increase the Official Cash Rate (OCR) by an additional 25 basis points (bps).

On the United States front, a change in the Federal Reserve's (Fed) existing monetary policy strategy generated volatility in the US Dollar. The US Dollar Index (DXY) fell to a six-month low of 103.49 after the Fed announced a smaller rate hike of 50 basis points (bps) and abandoned the 75 basis point rate hike cycle. As the fight against inflation will require considerable time, the Fed has increased the peak interest rate to 5.1% by the end of CY2023.

Trade

Market

Platform

Community

Tools

Education

Company

Others

Boost Your Trading with Exciting Bonus Rewards!