Shorts stampede Australian dollar
DXY looks ready for more bounce. That said, with France calming down, EUR could do it instead. The twins have death-crossed. As soon as oil eases, the growth party resumes. Not so obvious for EM. But screamingly so for junk. As duration rallies. Stocks to the moon! It’s not exactly complex. What is a little The post Shorts stampede Australian dollar appeared first on MacroBusiness .
The Australian dollar has edged higher on Tuesday, with the AUD/USD pair trading near one-month highs around 0.7027. According to FXStreet, this performance is driven by expectations of a hawkish Reserve Bank of Australia (RBA) and a recovery in equity markets as concerns regarding heavy AI spending diminish. However, a stronger US Dollar has limited the potential upside for the pair.
Market participants are awaiting Australia’s inflation data and RBA Governor Michele Bullock’s parliamentary testimony on Wednesday to help shape expectations for the RBA’s November interest rate decision. Forecasts suggest Australia’s headline Consumer Price Index (CPI) may rise to 4.2% annually in September, up from 4% in August. Elias Haddad of Brown Brothers Harriman notes that these upcoming inflation figures could keep inflation above the RBA’s year-end forecasts of 3.6% for headline and 3.3% for trimmed mean.
Additionally, the Federal Reserve’s monetary policy announcement scheduled for Wednesday serves as a further test for the pair. MacroBusiness observes that the DXY appears ready for more movement and suggests that as oil eases, a growth period may resume.
Brief written by urgent.news from MacroBusiness, FXStreet — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
