Anna 
The Australian Dollar (AUD) has rebounded from intraday losses, finding support from an improved S&P/ASX 200 on Tuesday. Although the Australian capital market initially opened lower, tracking overnight declines on Wall Street, it recovered ground on media reports suggesting that China might lift tariffs on Australian wine by the end of March. However, overall market sentiment remains cautious, with declines in property and mining stocks outweighing gains in consumer-related sectors.
Investors are exercising caution as they await key economic data releases from both Australia and the United States (US). The focus is on gaining insights into the monetary policy outlook for both countries. The ANZ-Roy Morgan Consumer Confidence Index for Australia remained nearly unchanged at 83.2 for the current week, marking the 56th consecutive week below the threshold of 85. The upcoming release of the Australian Monthly Consumer Price Index on Wednesday and Retail Sales data on Thursday is expected to provide further insights into the economic landscape.
The US Dollar Index (DXY) is holding steady, having stabilized after recent declines, despite an uptick in US yields. The stabilization in the DXY could be attributed to improved risk sentiment. The recent Federal Open Market Committee (FOMC) minutes indicated a reaffirmation of a data-dependent approach by the Federal Reserve (Fed), signaling a more dovish stance and exerting pressure on the US Dollar (USD). Investors will closely monitor key economic indicators scheduled for release later this week, including Gross Domestic Product Annualized (Q4), Core Personal Consumption Expenditures, and the Fed Monetary Policy Report.
