At the time of writing, the AUDUSD prices hover around at 0.7285. The market sentiment is pessimistic, as portrayed by global equities falling. In the FX market, risk-sensitive currencies.
The newest improvements in the US keep the Aussie traders resting on the dynamics of its economy. The US macroeconomic bill showed that Initial Jobless Claims for the week ending on January 7 rose 230K, higher than the 200K estimated by analysts, while prices paid for producers in December, also called PPI, decelerated, came at 9.7%, a tenth lower of the 9.8% foreseen.
The Federal Reserve would increase rates at least three times, presumably beginning in March. Fed speakers through the week, led by Chief Powell, and Vice-Chair nominee Lael Brainard, said that a rate hike is possible in March and would like to reduce the balance sheet the sooner, the better. The Fed speakers who expressed those views were: Regional Fed’s Presidents Bostic, Daly, Mester, and Barkin.
Fed aside, the Reserve Bank of Australia keeps its dovish stance in place. Furthermore, as noted in the RBA’s last monetary policy minutes, the Australian central bank said it would maintain highly supportive monetary policy conditions, and the board would be patient. The RBA noted that inflation increased but remained low, compared with other economies, like the US and the UK.
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