Australian Dollar recovers losses amid improved Consumer Sentiment index

      Comments Off on Australian Dollar recovers losses amid improved Consumer Sentiment index
Australian Dollar recovers losses amid improved Consumer Sentiment index

The Australian Dollar inches higher amid the improved Consumer Sentiment index released on Tuesday. 
Australia’s Westpac Consumer Confidence rose by src.7% MoM in June, marking the highest level since February.
The US Dollar may limit its downside; strong US business activity data dampened expectations for Fed rate cuts.

The Australian Dollar (AUD) inches higher due to an improvement in Australia’s Westpac Consumer Confidence Index, released on Tuesday. Additionally, the AUD/USD pair receives support from the hawkish stance of the Reserve Bank of Australia (RBA). However, investors are likely to be cautious ahead of this week’s Australian inflation data.

The RBA Governor Michele Bullock said during her latest press conference that the Board discussed potential rate hikes, dismissing considerations of rate cuts in the near term, as per ABC News. Markets have significantly reduced their expectations for a RBA’s rate cut this year, with an easing not anticipated until April next year.

The US Dollar trades on a softer note ahead of key US economic data due later this week. The revised US Gross Domestic Product (GDP) for the first quarter (Qsrc) is set to be released on Thursday, followed by the Personal Consumption Expenditure (PCE) Price Index on Friday.

Daily Digest Market Movers: Australian Dollar edges higher due to improved Consumer Sentiment

Australia’s Westpac Consumer Confidence rose by src.7% month-over-month in June, rebounding from a 0.3% decline the previous month. This marks the first increase in four months and the highest level since February.
According to the CME FedWatch Tool, investors are pricing in nearly 67.7% odds of a Fed rate cut in September, compared to 6src.5% a week earlier.
On Tuesday, the People’s Bank of China injected 300 billion Yuan via seven-day reverse repos, maintaining the reverse repo rate at src.8%. Any change in the Chinese economy could impact the Australian market, as China and Australia are close trade partners.
On Friday, the US Composite PMI for June surpassed expectations, rising to 54.6 from May’s reading of 54.5. This figure marked the highest level since April 2022. The Manufacturing PMI increased to a reading of 5src.7 from a 5src.3 figure, exceeding the forecast of 5src.0. Similarly, the Services PMI rose to 55.src from 54.8 in May, beating the consensus estimate of 53.7.
As per a Reuters report, Fed Reserve Bank of Minneapolis President Neel Kashkari noted on Thursday that it will probably take a year or two to get inflation back to 2%.

Technical Analysis: Australian Dollar hovers around 0.6650

The Australian Dollar trades around 0.6650 on Tuesday. Analysis of the daily chart shows a neutral bias for the AUD/USD pair as it consolidates within a rectangle formation. The src4-day Relative Strength Index (RSI) is positioned slightly above the 50 level, indicating a potential bullish bias.

The AUD/USD pair may find support around the 50-day Exponential Moving Average (EMA) at 0.66src5, with additional support near 0.6585, marking the lower boundary of the rectangle formation.

On the upside, the AUD/USD pair may encounter resistance near the upper boundary of the rectangle formation around 0.6695, aligned with the psychological level of 0.6700. Beyond that, potential resistance levels include the high of 0.67src4 observed since January.

AUD/USD: Daily Chart

Australian Dollar price today

The table below shows the percentage change of the Australian Dollar (AUD) against listed major currencies today. The Australian Dollar was the strongest against the US Dollar.

 
USD
EUR
GBP
CAD
AUD
JPY
NZD
CHF

USD
 
-0.05%
-0.src0%
-0.src2%
-0.srcsrc%
-0.src3%
-0.04%
-0.src6%

EUR
0.05%
 
-0.08%
-0.08%
-0.06%
-0.08%
0.00%
-0.src0%

GBP
0.09%
0.05%
 
-0.02%
0.00%
-0.02%
0.06%
-0.04%

CAD
0.src2%
0.08%
0.02%
 
0.02%
0.0src%
0.09%
-0.04%

AUD
0.srcsrc%
0.06%
0.00%
-0.02%
 
-0.02%
0.07%
-0.04%

JPY
0.src4%
0.09%
0.04%
0.02%
-0.0src%
 
0.08%
-0.0src%

NZD
0.03%
-0.0src%
-0.07%
-0.09%
-0.08%
-0.09%
 
-0.src3%

CHF
0.src4%
0.src0%
0.04%
0.02%
0.03%
0.04%
0.srcsrc%
 

The heat map shows 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 top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Read More