Australian Dollar Falls After Inflation Data
July 30 2024 - 10:52PM
RTTF2
The Australian dollar weakened against other major currencies in
the Asian session on Wednesday, as the nation's inflation report
spurred expectations among the traders that the Reserve Bank of
Australia is likely to maintain its interest rates steady at its
monetary policy meeting due next week.
Data from the Australian Bureau of Statistics showed that the
monthly CPI rose by 3.8 percent in the year to June, easing from
the 4 percent in May.
The consumer prices in Australia were up 1.0 percent on quarter
in the second quarter of 2024, unchanged and in line with
expectations.
On a yearly basis, inflation rose 3.8 percent, again matching
forecasts and up from 3.6 percent in the three months prior.
Traders remain optimistic about the outlook for interest rates
as they cautiously await the U.S. Fed's monetary policy
announcement later in the day.
Though the Fed is widely expected to leave interest rates
unchanged, traders will be looking to the accompanying statement
for additional clues about a possible rate cut in September.
Crude oil prices fell amid continued concerns about the outlook
for demand, and ahead of the Federal Reserve's monetary policy
announcement and weekly inventory data later today. West Texas
Intermediate crude oil futures for September ended down $1.08 or
1.42 percent at $74.73 a barrel.
In other economic news, data from the Reserve Bank of Australia
showed that the private sector credit in Australia was up 0.6
percent on month in June, beating forecasts for 0.4 percent, which
would have been unchanged.
On a yearly basis, private sector credit climbed 5.6
percent.
The ABS also reported that the value of retail sales in
Australia was up a seasonally adjusted 0.5 percent on month in
June, coming in at A$36.204 billion. That beat forecasts for an
increase of 0.2 percent following the 0.6 percent increase in
May.
On a yearly basis, sales rose 2.2 percent.
Further, the latest survey from the National Bureau of
Statistics showed that the manufacturing sector in China continued
to contract in July, and at a slightly faster rate, with a
manufacturing PMI score of 49.4. That was in line with expectations
and down slightly from 49.5 in June.
The survey also showed that the non-manufacturing PMI came in at
50.2 - again matching forecasts and easing from 50.5 - but still
expanding. The composite PMI was also at 50.2, down from 50.5 a
month earlier.
In the Asian trading today, the Australian dollar fell to nearly
a 3-1/2-month low of 98.59 against the yen and nearly a 5-month low
of 1.6700 against the euro, from yesterday's closing quotes of
99.89 and 1.6539, respectively. If the aussie extends its
downtrend, it is likely to find support around 97.00 against the
yen and 1.68 against the euro.
Against the U.S., the New Zealand and the Canadian dollars, the
aussie slid to a 3-month low of 0.6479, nearly a 4-week low of
1.0969 and nearly a 3-month low of 0.8973 from Tuesday's closing
quotes of 0.6537, 1.072 and 0.9052, respectively. The aussie may
test support near 0.63 against the greenback, 1.06 against the kiwi
and 0.88 against the loonie.
Looking ahead, Germany's unemployment rate for July and Eurozone
flash harmonized inflation data for July are slated for release in
the European session.
In the New York session, U.S. MBA weekly mortgage approvals
data, U.S. ADP Nonfarm employment data for July, Canada GDP data
for May, U.S. pending home sales for June and U.S. EIA crude oil
data are slated for release.
At 2:00 pm ET, the U.S. Federal Reserve will announce its fifth
interest rate decision for 2024 later tonight after a two-day
Federal Open Market Committee (FOMC) meeting today. The central
bank is expected to maintain its benchmark interest rates between
5.25 per cent - 5.50 percent.
Half-an-hour later, U.S. Fed Chairman Powell will conduct a
press conference about the final monetary policy announcement.
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Aug 2024 to Sep 2024
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Sep 2023 to Sep 2024