Ella 
The week started with the Australian dollar (AUD) retracing its losses from the previous session. The Australian dollar (AUD/USD) currency pair moved higher on Monday, even as the U.S. dollar (USD) edged higher amid rising U.S. Treasury yields. Investors will be closely watching Australia’s monthly consumer price index (CPI) data for February and US gross domestic product (GDP) data for the fourth quarter of 2023.
Driven by gains in the mining and energy sectors, Australia’s ASX 200 index continued its winning streak, and the Australian dollar gained momentum. In addition, the Australian dollar was also supported by a stronger yuan as the onshore yuan central parity rate set by the People’s Bank of China (PBoC) was significantly higher than expected.
The U.S. dollar index (DXY) retreated after hitting a five-week high of 104.49 in the previous session. The dollar (USD) may be under downward pressure as ongoing data from the United States (USD) affects expectations for the Federal Reserve’s (FED) easing cycle, which is expected to begin in June. Federal Reserve Chairman Jerome Powell assured markets that the central bank would not react hastily to two consecutive months of rising inflation data.
