Ella 
On Friday, the Australian dollar extended losses for two consecutive trading days. However, market activity is expected to be subdued due to thin trading on Good Friday. Meanwhile, the dollar strengthened as the latest data showed U.S. economic growth rising at an annual rate, driven by consumer spending. This situation weakened the AUD/USD trend.
The Australian dollar struggled amid weak consumer inflation expectations and retail sales data in Australia. The indicators have raised expectations that the Reserve Bank of Australia may cut interest rates in the second half of 2024. In addition, the weak monthly rate of Australia’s consumer price index released on Wednesday further strengthened this outlook.
The U.S. dollar index appears poised to continue its winning streak, with hawkish speeches from Federal Reserve (FED) officials boosting the greenback. Federal Reserve Governor Christopher Waller’s speech on Wednesday suggested that the central bank may delay cutting interest rates given the strong inflation data. Investors are now awaiting Friday’s U.S. PCE price index, a measure of inflation favored by the Fed, for more signals and guidance.
