The AUD/USD pair has continued its sideways performance in a range of 0.6660-0.6670 despite the Australian Bureau of Statistics has reported an upbeat Retail Sales data (March). Monthly Retail Sales have accelerated by 0.4%, higher than the consensus and the former release of 0.2%. Resilience in consumer spending indicates that the decision of hiking interest rates further by the Reserve Bank of Australia (RBA) was correct.
On Tuesday, the Reserve Bank of Australia hikes its Official Cash Rate (OCR) surprisingly by 25 basis points (bps) and pushed it to 3.85%. The street was anticipating a continuation of neutral policy by RBA Governor Philip Lowe as inflationary pressures are consistently declining for the past three months.
However, the RBA believed that the current monetary policy is not restrictive enough to achieve the agenda of price stability.
Going forward, investors will shift their focus on Australian Trade Balance (March) data, which will release on Thursday. Monthly Trade Balance data is seen declining 12,750M from the former release of 13,870M. A weaker-than-anticipated Trade Balance data would impact the Australian Dollar.
Meanwhile, S&P500 futures are showing some gains in the Asian session, portraying a minor recovery in the risk appetite of the market participants. US equities were heavily dumped on Tuesday amid fears of recession and rising concerns over the debt ceiling.
The US Dollar Index (DXY) has extended its correction further to near 101.79 despite the Federal Reserve (Fed) is expected to raise interest rates further by 25 bps above 5%. The USD Index is impacted by the commentary from Heather Boushey, a member of the Council of US Economic Advisers. US Boushey said that interest rate hikes from the Fed were having a negative impact on the banking sector, as reported by Reuters.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.