- The Australian dollar continues to struggle following remarks from RBA Governor Michele Bullock.
- According to Bullock, central banks will keep an eye on data and evolving risks to inform their policy choices.
- The White House stated that US firms are overseeing TikTok’s algorithms, with Americans holding six out of seven board seats.
On Monday, the Australian Dollar (AUD) declined against the US Dollar (USD), marking the fourth consecutive session of losses. As the USD strengthens—following last week’s adjusted forecasts—it’s evident that there are no immediate plans for rate cuts in the upcoming months. This decision has had a noticeable effect on the AUD/USD pair.
In testimony before Congress Monday, RBA Governor Michele Bullock noted that while labor market conditions have softened a bit, unemployment remains high, yet there are still plenty of job opportunities. She mentioned that the recent cuts in interest rates should stimulate spending among households and businesses. Nevertheless, the RBA must stay alert to changing conditions and be ready to react as needed. Ongoing data monitoring will be crucial in guiding future decisions.
The People’s Bank of China (PBOC) declared on Monday that it will maintain its loan prime rate (LPRS), with the 1-year and 5-year rates remaining at 3.00% and 3.50% respectively.
The White House emphasized that US companies are managing TikTok’s algorithms, and an American presence is prominent on the board, with six out of seven positions filled by US nationals. A spokesperson indicated that the deal might be finalized in just a few days.
Australian Dollar Weakens as US Dollar Gains Ground
- The US Dollar Index (DXY), which gauges the USD against six major currencies, is currently around 97.70. This week, all eyes are on the Personal Consumption Expenditure (PCE) Price Index, a key inflation metric preferred by the Federal Reserve, anticipated to indicate modest pricing pressures.
- On Thursday, the U.S. Department of Labor (DOL) reported initial unemployment claims fell to 231K for the week ending September 13, down from the previous 264K (revised from 263K) and below the initial estimate of 240K. Ongoing unemployment claims for the week ending September 6 also saw a drop to 1.920 million.
- The Federal Reserve recently cut its fund rate by 25 basis points (BPS), marking the first reduction this year and signaling an additional easing of 50 bps before the year’s end, slightly exceeding earlier forecasts.
- Federal Reserve Chairman Jerome Powell noted signs of a weakening labor market, which influenced their decision to stabilize it after a period of monitoring since December amid inflation concerns.
- China’s Ministry of Industry and Information Technology unveiled a two-year initiative aimed at stabilizing the steel sector, targeting an annual growth rate of 4% while capping production growth.
- In August, seasonally adjusted employment changes in Australia fell to -5.4k from a revised 26.5k in July, contrary to a forecast of 22K. The unemployment rate for August remained steady at 4.2% as expected.
- Market predictions show only a 20% chance of an RBA rate cut this September, with a more likely 70% chance in November, as persistent inflation keeps policymakers cautious.
Australian Dollar Looks for Support Around 0.6550 Near 50-Day EMA
Trading around 0.6590 on Monday, the AUD/USD pair has broken through its upward channel, hinting at a potential bearish trend. Still, the 14-day relative strength index (RSI) remains above 50, which suggests that some bullish sentiment persists.
The pair might find initial support at 0.6550, close to the 50-day EMA of 0.6548. Falling below this zone could exacerbate medium-term bearish momentum, driving the pair down towards its three-month low of 0.6414 recorded on August 21.
On the other hand, successfully moving past the 9-day EMA of 0.6613 could reinstate the upward channel, supporting short-term momentum for the AUD/USD pair. This may push it closer to the 11-month high of 0.6707 reached on September 17, followed by the channel’s upper limit of 0.6720.
AUD/USD: Daily Charts
Australian Dollar Prices Today
The following table outlines the changes in the Australian Dollar (AUD) against other major currencies. Currently, the Australian dollar shows the weakest performance against the US dollar.
|
USD |
EUR |
GBP |
JPY |
CAD |
AUD |
NZD |
CHF |
| USD |
|
0.15% |
0.09% |
0.27% |
0.13% |
0.09% |
0.16% |
0.35% |
| EUR |
-0.15% |
|
-0.05% |
0.07% |
-0.05% |
-0.11% |
-0.02% |
0.15% |
| GBP |
-0.09% |
0.05% |
|
0.08% |
0.03% |
-0.03% |
0.06% |
0.26% |
| JPY |
-0.27% |
-0.07% |
-0.08% |
|
-0.15% |
-0.21% |
-0.11% |
0.06% |
| CAD |
-0.13% |
0.05% |
-0.03% |
0.15% |
|
-0.06% |
0.04% |
0.24% |
| AUD |
-0.09% |
0.11% |
0.03% |
0.21% |
0.06% |
|
0.09% |
0.30% |
| NZD |
-0.16% |
0.02% |
-0.06% |
0.11% |
-0.04% |
-0.09% |
|
0.16% |
| CHF |
-0.35% |
-0.15% |
-0.26% |
-0.06% |
-0.24% |
-0.30% |
-0.16% |
|
The heatmap displays the rate of change among major currencies. The base currency is listed in the left column, and the selected currency is found in the top row. For instance, selecting Australian dollars from the left and aligning it with US dollars on the top indicates the change rate shown in the corresponding box.
Australian Dollar stays weak after comments from RBA Governor Bullock
On Monday, the Australian Dollar (AUD) declined against the US Dollar (USD), marking the fourth consecutive session of losses. As the USD strengthens—following last week’s adjusted forecasts—it’s evident that there are no immediate plans for rate cuts in the upcoming months. This decision has had a noticeable effect on the AUD/USD pair.
In testimony before Congress Monday, RBA Governor Michele Bullock noted that while labor market conditions have softened a bit, unemployment remains high, yet there are still plenty of job opportunities. She mentioned that the recent cuts in interest rates should stimulate spending among households and businesses. Nevertheless, the RBA must stay alert to changing conditions and be ready to react as needed. Ongoing data monitoring will be crucial in guiding future decisions.
The People’s Bank of China (PBOC) declared on Monday that it will maintain its loan prime rate (LPRS), with the 1-year and 5-year rates remaining at 3.00% and 3.50% respectively.
The White House emphasized that US companies are managing TikTok’s algorithms, and an American presence is prominent on the board, with six out of seven positions filled by US nationals. A spokesperson indicated that the deal might be finalized in just a few days.
Australian Dollar Weakens as US Dollar Gains Ground
Australian Dollar Looks for Support Around 0.6550 Near 50-Day EMA
Trading around 0.6590 on Monday, the AUD/USD pair has broken through its upward channel, hinting at a potential bearish trend. Still, the 14-day relative strength index (RSI) remains above 50, which suggests that some bullish sentiment persists.
The pair might find initial support at 0.6550, close to the 50-day EMA of 0.6548. Falling below this zone could exacerbate medium-term bearish momentum, driving the pair down towards its three-month low of 0.6414 recorded on August 21.
On the other hand, successfully moving past the 9-day EMA of 0.6613 could reinstate the upward channel, supporting short-term momentum for the AUD/USD pair. This may push it closer to the 11-month high of 0.6707 reached on September 17, followed by the channel’s upper limit of 0.6720.
AUD/USD: Daily Charts
Australian Dollar Prices Today
The following table outlines the changes in the Australian Dollar (AUD) against other major currencies. Currently, the Australian dollar shows the weakest performance against the US dollar.
The heatmap displays the rate of change among major currencies. The base currency is listed in the left column, and the selected currency is found in the top row. For instance, selecting Australian dollars from the left and aligning it with US dollars on the top indicates the change rate shown in the corresponding box.
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