Aussie price oscillate close to the 0.64600 key zone, despite traders’ sentiment on the federal funds rate. The price tendency has been extending its losses in the intraday session by 0.18% after bouncing off the old low of 0.64360 on Monday. The US Dollar has eased its blown-out rally and this has, however, offered significant support to the market. A lot of concern has been raised as the global economic downturn goes deeper, especially with the escalation in the Russia-Ukraine conflict, which also plays a role in global market movement.
Us Dollar Has Eased Its Blown-Out Rally
The greenback has been fueled due to the Federal Reserve adopting a more hawkish stance, therefore influencing upsides for the Australian market. The UK government’s active decision had a significant impact, as it triggered risk aversion, resulting in a global bond sell-off. This, however, drained GBP and thus strengthened the greenback. Based on the report by Charles Evans and St. Louis Fed James Bullard on Tuesday, we expect the federal fund rate (FFR) to be close to 4.50 to 4.75% and unemployment should rise to lessen inflationary pressures.
Atlanta Fed President Raphael Bostic wants inflation to be under control and, as a result, raised the yield on the sensitive 2-year US government bond to a 15-year all-time high and the benchmark ten-year treasury note to its highest. This in turn favours the bulls as the only way out for Aussie is the downside.
The Senior Director of Economic Indicators, Franco Lyn, spoke at the Conference Board meeting on how consumer confidence intensified in September as largely impacted by overall wages, jobs, and a reduction in gas prices. Bloomberg also reported that the US Census Bureau reported an unexpected increase in new home sales when compared to the previous projection.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.