- The US dollar index retreats in the middle of the market in the middle before the decision of the Federal Reserve rate.
- US President Trump hints at possible changes in USMCA, but there are not yet specific trade transactions, keeping the markets carefully.
- Australian dollar growth against major currencies including a 0.40% increase in GreenbackTo.
The AUD/USD pair remains durable, despite its recent ups. The Australian Dollar (AUD) will benefit from the weaker US dollar (USD) as market participants will focus on the expected political meeting of the Federal Reserve (Fed) Federal Reserve on Wednesday. In the meantime, trade rhetoric traders around the Trump administration are on the edge, especially when President Donald Trump discussed possible changes in the United States-Mexican-Canada Agreement (USMCA). However, there are no definitive updates in commercial transactions, leaving uncertainty in the world markets. The Australian dollar is also supported by its moderate recovery in the context of lasting Chinese economic activity.
Daily Digest Market Movers: US Dollar defended the Fed Before Fed
- Asian currencies see strong benefits as markets value the potential effect of the Taiwan Dollar strength.
- The US dollar index (DXY) is under pressure, falling to 99.30, as investors are waiting for the decision of the Federal Open Market Committee (FOMC).
- The estimated meeting could give clues about possible interest rates at the end of the year.
- At the same time, global foreign exchange markets react with uncertainty, especially in Asia, where the rise of the Taiwanese dollar affects broader regional currencies. Investors also monitor all messages related to trade negotiations in the Trump administration, although no details have been created about the final contracts.
Technical Analysis: AUD/USD is still supported by Bullish
AUD/USD pair flashes the bullish signal, trades at 0.6500, increasing 0.40% a day and sits on the daytime between 0.6438 and 0.6498 near the peak. The relative strength index (RSI) is 63.48, signals a neutral impulse. The moving average approach difference (MACD) shows the shopping signal and the freight channel index (CCI) counts 124.18, which also refers to bullish prejudices. The average direction index (ADX) is 21.07 neutral, indicating a balanced market. Key movements strengthen the bullish outlook: 20-day SMA (0.6372), 100-day SMA (0.6286) and 200-day SMA (0.6462) suggest all shopping pressure. In addition, the 10-day mother (0.6422) and SMA (0.6418) confirm the bullish sentiment. Support levels are detected in the range of 0.6469, 0.6462 and 0.6422, providing a specific basis for further favor.
Australian Dollar Fuck
One of the most important factors in the Australian Dollar (AUD) is the level of interest rates set by the Australian Reserve Bank (RBA). As Australia is a resource -rich country, the second key manager is the price of its largest export, iron ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as Australian inflation, its growth rate and trade balance. Market minds-investors accept more risky assets (risk-on) or are looking for safe Haven (risk-field) -s factor, which is a positive risk for AUD.
The Australian Reserve Bank (RBA) affects the Australian dollars (AUD), setting Australian banks to borrow to each other. This affects the level of interest rates for the entire economy. The main purpose of the RBA is to maintain a stable inflation rate of 2-3%by adjusting the interest rates up or down. Relatively high interest rates compared to other major central banks support AUD and the opposite relatively low. RBA can also be used to use quantitative alleviation and effort to influence the credit conditions with the former AUD negative and the other.
China is the largest trading partner in Australia, so the health of the Chinese economy is a significant impact on the Australian dollar value (AUD). If the Chinese economy is doing well, it buys more raw materials, goods and services in Australia, raising the demand for AUD and pushing its value. The opposite is that the Chinese economy does not grow as fast as it was thought. Therefore, positive or negative surprises of Chinese growth data are often a direct impact on the Australian dollar and its couples.
Raudmaa ore is the largest export of Australia, which, according to the 2021 data, is $ 118 billion a year, which is the main destination of China. Therefore, the price of iron ore may be the Australian dollar leader. In general, AUD also rises the price of iron ore as the demand for all currency is increasing. The opposite is the case when the price of iron ore falls. Higher prices for iron ore also cause Australian positive trade balance, which is also positive for AUD.
A trade balance, which is a difference between what the state earns from its exports compared to what it pays for imports is another factor that can affect the value of the Australian dollar. If Australia produces highly coveted exports, it becomes a purely surplus demand from foreign buyers who want to buy their exports compared to what it spends to buy imports. Therefore, the positive net trade balance is strengthened by the AUD if the trade balance is negative.
