AUD / USD had a price rebound very early into the Asian trading period, as the risk-taking sentiment drive weakens. The major is anticipating a price directional change from its important support of the 0.6690 level. This is because the economic calendar has very few economic activities as it concerns the AUD / USD.
As well, the dollar index (DXY) experienced little change in direction during the Asian trading period today after it rallied yesterday. The DXY dropped by 1.5%, following its reach of a new nineteen years high of 105 last week. An actively increasing interest rate of 50bps by the Federal Reserve (Fed) is not able to maintain the dollar’s upward trend.
Factors Influencing the AUD / USD Value
The Fed is trying to stabilize its financial state shortly. This is because rising inflation keeps affecting the income of families within the Fed’s economy. It will not be an astonishment if the Fed introduces two more big interest rates this year. This will consequently affect the USD.
From the AUD perspective, traders are stuck in an unanticipated hawkish RBA (Reserve Bank of Australia) interest rate. The publication of the RBA’s minutes yesterday directed that they are weighing in on interest rate increases. This signals that the RBA has commenced moving its interest rate inflection away from its lowest levels. The interest rate adjustment by the RBA will influence the AUD / USD price.
The main event for this week will be the publication of the job statistics by the Australian Bureau of Statistics. It is anticipated that the Bureau will publish a job addition in the entire labor force of 30,000. The 30,000 labor force addition is more than the previous release of 17,500. In addition, the unemployment rate might reduce to 3.90 percent from the previous 4.00 percent.
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