Anna 
The Australian Dollar (AUD) continued its upward trajectory for the third consecutive session on Wednesday, buoyed by the weakening performance of the US Dollar (USD). The AUD/USD pair achieved a four-week high of 0.6644 in the preceding session, a move largely attributed to the decline in US Treasury yields.
Investors’ growing skepticism regarding the necessity for the Reserve Bank of Australia (RBA) to implement interest rate cuts in 2024 has contributed to the Australian Dollar’s strength. This sentiment stems from the anticipation of the Federal Reserve (Fed) maintaining its stance on higher interest rates.
The RBA has indicated a reluctance towards further rate cuts, citing the need for greater confidence in the inflation outlook before considering such measures. As a result, market participants are adjusting their expectations accordingly, supporting the Australian Dollar against its US counterpart.
Attention now turns to the release of the US Consumer Price Index (CPI) data and the Federal Open Market Committee (FOMC) Minutes later in the North American session. These releases are poised to influence market sentiment further, potentially impacting the trajectory of the AUD/USD pair in the near term.
The interplay between central bank policies, economic data releases, and market sentiment underscores the dynamic nature of currency markets. As investors navigate evolving macroeconomic trends and policy developments, the Australian Dollar’s resilience amidst USD struggles reflects the intricate balance of forces shaping currency movements.
