The Australian Dollar (AUD) starts the week by recovering its recent losses registered in the previous session. The AUD/USD pair trades higher on Monday despite a slight decrease in the US Dollar (USD) amid higher US Treasury yields. Investors are expected to closely monitor the Australian monthly Consumer Price Index (CPI) data for February and the US Gross Domestic Product (GDP) for the fourth quarter of 2023.
The Australian Dollar receives upward momentum as the ASX 200 Index extends its winning streak, led by gains in the mining and energy sectors. Additionally, the Aussie Dollar is bolstered by a stronger Chinese Yuan (CNY), with the People's Bank of China (PBoC) setting the mid-rate for the onshore yuan significantly higher than expected.
The US Dollar Index (DXY) undergoes a correction after hitting a five-week high of 104.49 in the previous session. The US Dollar (USD) might face downward pressure as ongoing United States (US) data shapes expectations for the start of the Federal Reserve (Fed) easing cycle, anticipated to commence in June. The Federal Reserve (Fed) has downplayed higher inflation readings, with Chairman Jerome Powell reassuring markets that the central bank will not hastily react to two consecutive months of increased inflation figures.
Daily Digest Market Movers: Australian Dollar appreciates on stronger CNY, ASX 200 Australian Employment Change for February surged to 116.5K, surpassing expectations of 40.0K and the previous figure of 15.3K. Australia’s Unemployment Rate came in at 3.7%, lower than the anticipated 4.0% and the previous 4.1%. Australia's government has pledged to support a minimum wage increase aligned with inflation this year, recognizing the ongoing challenges faced by low-income families amid rising living costs. China's Premier Li Qiang stated on Sunday that the nation's low inflation rate and low central government debt ratio provide significant leeway for macroeconomic policy adjustments. Federal Reserve Bank of Atlanta President Raphael Bostic revised his earlier forecast of two interest rate cuts this year, now expecting only one, citing persistent inflation and stronger-than-expected economic data. During the press conference, Fed Chair Jerome Powell stated that an unexpected rise in unemployment could lead the Federal Reserve to consider lowering interest rates. S&P Global Services PMI showed a slight decrease in March, dropping to 51.7 from 52.3. The expected reading was 52.0. Manufacturing PMI rose to 52.5 against the expected 51.7 and 52.2 prior. Composite PMI showed a slight dip to 52.2 from 52.5 prior. Initial Jobless Claims for the week ending on March 15 came in at 210K, below the 215K expected and 212K prior. Technical Analysis: Australian Dollar hovers below 0.6540 followed by the 23.6% Fibonacci The Australian Dollar trades near 0.6530 on Monday. The immediate resistance appears at the 23.6% Fibonacci retracement level of 0.6541, followed by the major barrier of 0.6550 level. A breakthrough above the latter could lead the AUD/USD pair to navigate the area around the 50-day Exponential Moving Average (EMA) at 0.6566, following the psychological barrier of 0.6600. On the downside, the key support appears at the psychological level of 0.6500. followed by March’s low at 0.6477.
Australian Dollar price today The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Swiss Franc.
