AUDUSD eye gains amid a Feds decision. The AUD/USD pair is on the rebound. The price is currently trading at 0.64350 after briefly dipping to a daily low of 0.64180 at the key level. This recovery is attributed to positive Chinese economic data, which has injected a dose of optimism.
Investors are now turning their attention to the upcoming decision from the US Federal Reserve. It’s widely anticipated that the Fed will maintain its current interest rates, with a staggering 99% chance of no change. What’s particularly interesting for market participants is the release of the “dot-plots.” It will provide insights into Fed officials’ expectations regarding the Federal Funds Rate (FFR) path. This information will likely have a significant impact on currency movements.
Aussie (AUDUSD) Outlook
Meanwhile, on the Australian front, economic indicators are on the horizon. The Judo Bank Services and Manufacturing Purchasing Managers’ Index (PMIs) will be closely scrutinized, along with inflation data.
In the US, last week brought some notable economic developments. Inflation saw an uptick on both the consumer and producer sides and the job market remained robust. While retail sales didn’t meet expectations, they remained solid above the 2% threshold. Consumer sentiment took a hit, partly due to elevated gasoline prices, as indicated by a University of Michigan poll (UoM).
Looking ahead, a batch of US housing data is set to be unveiled later in the week. Still, all eyes are firmly fixed on Jerome Powell and his colleagues at the Fed. The central bank’s stance is eagerly awaited, with most money markets not expecting any surprises. The focus will be on the ‘dot plots’ to gain insights into the future trajectory of the Federal Funds Rate.
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