Ella 
The Australian dollar (AUD) extended gains for the second consecutive session on Tuesday. A fall in the U.S. dollar (USD) provides support for AUD/USD. However, consumer confidence index data released by Australia’s Westpac Bank (Westpac) showed that Australia’s consumer confidence index fell to 84.4 in March 2024 from 86.0 in February, a decrease of 1.8%, from a 20-month high. Points retreated, with the Australian dollar facing slight downward pressure.
The Aussie dollar strengthened as expectations for a rate cut from the Reserve Bank of Australia, driven by falling consumer confidence in Australia, provided support to the Australian stock market. The ASX 200 index extended its winning streak despite modest weakness on Wall Street overnight. Investors are expected to pay close attention to Australia’s monthly consumer price index data due on Wednesday.
The U.S. dollar index (DXY) fell for a second straight day, largely due to lower U.S. Treasury yields. Market sentiment is leaning towards expectations that the Federal Reserve will start an easing cycle, with expectations that the Federal Reserve may start cutting interest rates in June.
