Friday's session recorded a significant uplift in the Australian Dollar (AUD) against the US Dollar following an unexpected inflation reduction in the US in May.
AUD rose against USD due to US inflation reduction and a potential dovish stance from the Fed. Soft PCE data from the US may benefit the Aussie policy divergence between the RBA and Fed. RBA's delayed rate cuts could bolster the Aussie, contrasting with other G10 central banks' reduction strategies. Friday's session recorded a significant uplift in the Australian Dollar against the US Dollar following an unexpected inflation reduction in the US in May.
Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets or seeking safe-havens – is also a factor, with risk-on positive for AUD.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Australian Dollar pares gains after lower China’s PMI, US PCE eyedThe Australian Dollar (AUD) trimmed its gains after the release of lower-than-expected NBS Purchasing Managers Index (PMI) data from China on Friday.
Read more »
Australian Dollar depreciates as US Dollar holds ground on hawkish FedThe Australian Dollar (AUD) extends its losses for the third successive session on Monday.
Read more »
Australian Dollar stays calm, while US Dollar advances on expected delay over Fed cutsThe Australian Dollar (AUD) remains soft on Monday following the decline in the previous session.
Read more »
Australian Dollar continues to struggle following Australian labor market resultsThe Australian Dollar (AUD) fell further against the US Dollar (USD) on Thursday despite strong labor market data from Australia reported earlier in the session.
Read more »
US Dollar gains cleared out post PCE dataThe end of the week saw the US Dollar, as benchmarked by the DXY Index, settle near 105.80, after hitting a high of 106.13 earlier in the session.
Read more »
US Dollar Index (DXY) Listless After Core PCE Meet ForecastsThe latest Core PCE data met market estimates across all readings leaving the US dollar rudderless going into the weekend.
Read more »