AUD/USD clings to strong intraday gains, flirts with daily peak around 0.6770-75 area – by hareshmenghani AUDUSD China RiskAppetite Fed Currencies
A positive risk tone prompts selling around the USD and benefits the risk-sensitive Aussie.The focus remains on the outcome of the highly-anticipated FOMC monetary policy meeting.attracts fresh buying in the vicinity of the 200-day Simple Moving Average for the second straight day on Tuesday and builds on its steady intraday ascent through the early European session. Spot prices touched a fresh daily peak, around the 0.6775 region in the last hour and draw support from a combination of factors.
Investors cheered China's pledge to step up support for its fragile economy, which is evident from a positive risk tone around the equity markets and benefits the risk-sensitive Australian Dollar . In fact, stateagency Xinhua cited the Politburo - the top decision-making body of the ruling Communist Party - saying that China will step up economic policy adjustments, focusing on expanding domestic demand, boosting confidence and preventing risks.
, which, in turn, is seen as another factor acting as a tailwind for the AUD/USD pair. The USD Index , which tracks the Greenback against a basket of currencies, corrects from a two-week high and for now, seems to have stalled a one-week-old recovery trend from its lowest level since April 2022. Any further USD downside, however, seems limited as traders might refrain from placing aggressive bets and prefer to wait for cues about the Federal Reserve's future rate-hike path.
The US central bank is scheduled to announce its decision on Wednesday. The markets have been pricing out the possibility of any further rate hikes after the widely anticipated 25 bps lift-off in July. Investors, however, remain sceptic if the Fed will commit to a more dovish stance, suggesting that investors will closely scrutinize the accompanying policy statement and Fed Chair Jerome Powell's remarks at the post-meeting press conference.
Market participants now look to the US macro data - the Conference Board's Consumer Confidence Index and Richmond Fed Manufacturing Index - for some impetus later during the early North American session. Apart from this, the broader risk sentiment might produce short-term trading opportunities around the AUD/USD pair ahead of the Australian Consumer inflation figures, due for release during the Asian session on Wednesday.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
AUD/USD finds intermediate support above 0.6700 ahead of US PMI and Aussie InflationThe AUD/USD pair has found temporary support around 0.6720 in the Asian session. The Aussie asset is consistently declining from the past week as the
Read more »
AUD/USD fades bounce off 0.6720 support confluence amid bearish options market signalsAUD/USD fades bounce off 0.6720 support confluence amid bearish optimism market signals – by anilpanchal7 AUDUSD Options Markets Technical Analysis RiskAversion
Read more »
AUD/USD rises to 0.6770 area on more stimulus promises from China, modest USD downtickAUD/USD rises to 0.6770 area on more stimulus promises from China, modest USD downtick – by hareshmenghani AUDUSD China Fed EconomicIndicator Currencies
Read more »
‘Speak Now (Taylor’s Version)’ Spends Second Week at No. 1 on Billboard 200Taylor Swift’s 'Speak Now (Taylor’s Version)' spends a second week at No. 1 on the Billboard 200 albums chart.
Read more »
First look: 200-room hotel coming to Hollywood CasinoEat drink and be merry, at Hollywood Casino's new 150,000-square foot hotel coming to the property.The casino and the Columbus Building & Construction Trade Cou
Read more »
Former OBGYN Robert Hadden sentenced to 20 years in sex abuse case involving 200+ victimsEx-Columbia University OBGYN sentenced to 20 years for sexually assaulting dozens of women over decades
Read more »