Anna 
The Australian Dollar (AUD) initiated the week by reclaiming losses incurred in the preceding session, with the AUD/USD pair trading higher on Monday. This recovery occurred despite a marginal decline in the US Dollar (USD), attributed to elevated US Treasury yields. Investors are poised to closely track key economic indicators, including Australia’s monthly Consumer Price Index (CPI) data for February and the US Gross Domestic Product (GDP) figures for the fourth quarter of 2023.
The AUD found support as the ASX 200 Index extended its winning streak, particularly driven by robust performances in the mining and energy sectors. Furthermore, the Australian Dollar received a boost from a stronger Chinese Yuan (CNY), with the People’s Bank of China (PBoC) setting the mid-rate for the onshore yuan notably higher than anticipated.
Meanwhile, the US Dollar Index (DXY) underwent a correction following its recent ascent to a five-week high of 104.49. The USD faced downward pressure amidst evolving US data, shaping market expectations for the onset of a Federal Reserve (Fed) easing cycle, forecasted to commence in June. Chairman Jerome Powell has tempered concerns over elevated inflation readings, reassuring markets that the central bank will adopt a measured approach and refrain from premature reactions to consecutive months of heightened inflation figures.
