Skip to content AUDUSD Fundamental Analysis – 24-June-2024
AUD/USD—The Australian dollar (AUD) recently fell below $0.667, continuing its downward trend. This decline is mainly due to the strengthening of the US dollar, driven by robust US business activity data. This data has reduced the likelihood of the Federal Reserve cutting interest rates soon, making the US dollar more attractive to investors.
RBA Rate Decision Delays Market Predictions
In Australia, investors are keenly awaiting new inflation figures due this week. The Reserve Bank of Australia (RBA) recently held its cash rate steady at 4.35% for the fifth consecutive meeting, which was widely anticipated. However, discussions within the RBA indicated a rate hike was considered, although a rate cut was not on the table.
This stance has led markets to reduce their expectations of an RBA rate cut this year, predicting that any easing will not occur until April next year.
Impact of China’s Economy on Australia
Additionally, investors closely watch upcoming data on China’s manufacturing and services activity. China is Australia’s largest trading partner, and its economic health has significant implications for the Australian economy.
Summary
Understanding these factors helps investors make informed decisions. The interplay between US economic data, Australian inflation, and Chinese economic health creates a complex environment for the AUD, highlighting the importance of staying informed about global economic trends.
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