The Australian Dollar (AUD) has experienced a significant drop in value, with the AUD\/USD pair dropping 0.12% for the day and extending its losses throughout the week. The RBA’s 25 bps rate hike under new Governor Michele Bullock’s leadership failed to provide a bullish impetus for the Aussie, and Fed Chair Jerome Powell’s hawkish tone on US monetary policy added to the AUD’s woes.
The Reserve Bank of Australia’s 25 bps rate hike, the first monetary policy decision headed by Governor Michele Bullock, failed to deliver a hawkish stance, sending the pair into a tailspin.
Despite dovish remarks by several Federal Reserve members, the AUD\/USD remained afloat until Thursday when Fed Chair Jerome Powell was more hawkish than expected.
The AUD\/USD failed to extend last week’s uptrend due to fundamentals and market sentiment, and a deflationary scenario in China hurts the Aussie’s prospects due to Australia’s dependence on its largest trading partner.
A further deterioration of China’s economy would dampen Australia’s prospects, suggesting further AUD\/USD weakness lies ahead. The following week’s economic docket will feature NAB Consumer Confidence and jobs data, while inflation data, unemployment claims, and Fed speaking will provide some clues regarding the US economy’s status.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Australian Dollar (AUD) has experienced a significant drop in value, with the AUD\/USD pair dropping 0.12% for the day and extending its losses throughout the week. The RBA’s 25 bps rate hike under new Governor Michele Bullock’s leadership failed to provide a bullish impetus for the Aussie, and Fed Chair Jerome Powell’s hawkish tone …<\/p>\n","protected":false},"author":13,"featured_media":32839,"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":[38,36],"tags":[7063,7164,7035],"class_list":["post-92415","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-market-updates","tag-aud-usd","tag-powell","tag-rba"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/92415","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=92415"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/92415\/revisions"}],"predecessor-version":[{"id":92420,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/92415\/revisions\/92420"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/32839"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=92415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=92415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=92415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}