AUD/USD Strengthens Slightly to Above 0.6600

In early Asian trading on Monday, the Australian dollar/US dollar rose slightly to around 0.6605. Investors are awaiting key U.S. economic data this week, including consumer price index (CPI), producer price index (PPI) and retail sales data, for new catalysts.

On Friday, San Francisco Fed President Mary Daly emphasized the need to extend restrictive policies to achieve the Fed’s inflation target. Meanwhile, Atlanta Fed President Raphael Bostic said the central bank may still plan to cut interest rates this year despite the uncertain outlook. The U.S. dollar (USD) has been provided with some support by the Federal Reserve’s caution.

Elsewhere, consumer confidence fell as worries about inflation rose, according to a University of Michigan survey on Friday. The preliminary consumer confidence index fell to 67.4 in May from 77.2 in April, lower than the expected 76.0. One-year inflation expectations jumped to 3.5%, and five-year inflation expectations rose to 3.1%. Both data hit their highest levels since November 2023.

In terms of the Australian dollar, the Australian Treasury said on Sunday that it expected inflation to return to the Reserve Bank of Australia’s target range by the end of 2024. In the December outlook, officials expected inflation to fall back to 3.75 per cent by mid-2024 and 2.75 per cent by mid-2025, returning to the RBA’s target range.

AUD latest articles

Popular exchange rates

foreign exchange

fxcurrencyconverter is a forex portal. The main columns are exchange rate, knowledge, news, currency and so on.

© 2023 Copyright fxcurrencyconverter.com