Last week\u2019s inflation data in the United States boosted the US dollar\u2019s recovery as US Treasury bond yields aimed higher. The AUD\/USD pair is eyeing the busy economic calendar in Australia and the US next week.
The Australian dollar finished the week with negative performance after hitting a daily high of 0.6884, dropped on a risk-off impulse, as Wall Street ended the session with losses between 0.26% and 0.58%, while the Dow Jones was the outlier, finishing 0.39% above its opening price. At the time of writing, the AUD\/USD exchanges hands at 0.6877
Global stocks finished negatively as investors increased their bets that the US Fed will tighten policy above earlier expectations. Last week\u2019s January inflation reports for CPI and PPI data were lower compared to December\u2019s data but above estimates.
On Friday, Fed\u2019s Michell Bowman stated that the US central bank has not finished tightening monetary conditions and reiterated that \u201cwe haven\u2019t beaten inflation.\u201d Meanwhile, Richmond\u2019s Fed President Thomas Barkin said that getting inflation back to the Fed\u2019s 2% goal \u201cwill require more rate increases.\u201d
In the Asian session, the RBA Governor Philipe Lowe said that based on incoming data, the RBA board estimates that additional rate increases will be needed \u201cover the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary.\u201d
Given the backdrop and worse than estimates Australian labour market date revealed on Wednesday, the US Dollar (USD) regained composure and weighed on the Australian dollar. The AUD\/USD pair tumbled from around 0.6989 toward the week\u2019s lows at 0.6811.<\/p>\n","protected":false},"excerpt":{"rendered":"
Last week\u2019s inflation data in the United States boosted the US dollar\u2019s recovery as US Treasury bond yields aimed higher. The AUD\/USD pair is eyeing the busy economic calendar in Australia and the US next week.The Australian dollar finished the week with negative performance after hitting a daily high of 0.6884, dropped on a risk-off …<\/p>\n","protected":false},"author":13,"featured_media":70959,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[7063,6853,6885,8444,8143,7822,7035],"class_list":["post-80220","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-aud-usd","tag-employment","tag-fed","tag-hawkish-language","tag-interest-rate-hikes","tag-labour-market","tag-rba"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/80220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=80220"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/80220\/revisions"}],"predecessor-version":[{"id":80225,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/80220\/revisions\/80225"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/70959"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=80220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=80220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=80220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}