Ella 
In early Asian trading on Monday, AUD/USD found some support above the 0.6500 mark. AUD/USD is trading lower amid further gains in the US dollar (USD). Investors will focus on Australia’s February consumer price index (CPI) and US fourth-quarter gross domestic product (GDP). As of press time, the Australian dollar/US dollar was trading at 0.6512, an intraday decline of 0.03%.
Fed policymakers have said they will be able to cut interest rates when they are confident that inflation is heading toward their 2.0% target. Federal Reserve Chairman Jerome Powell said at a news conference that an unexpected rise in unemployment could prompt the Fed to cut interest rates. The Fed also maintained its previous forecast that it would cut interest rates three times before the end of the year, according to the dot plot.
On the other hand, Chinese Premier Li Qiang said on Sunday that China’s low inflation and central government debt ratios mean there is ample room for macroeconomic policies. The Chinese government will issue one trillion yuan worth of ultra-long special treasury bonds, which will effectively support investment and stabilize economic growth. In addition, the Chinese government will work hard to prevent systemic risks and promote the long-term and healthy development of the Chinese economy. Further positive developments in China’s economic stimulus and macro policies could boost China’s proxy currency AUD/USD.
