AUD/USD jumps to 0.6650 as US Dollar drops ahead of US Inflation – Crypto News – Crypto News
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AUD/USD declines after facing barricades around 0.6900, focus shifts to US PMI AUD/USD declines after facing barricades around 0.6900, focus shifts to US PMI

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AUD/USD jumps to 0.6650 as US Dollar drops ahead of US Inflation – Crypto News

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  • AUD/USD climbs to 0.6635 as US Dollar dips amid upbeat market mood.
  • US yields fell as Fed Goolsbee warns about risks to labor market if interest rates remain higher for longer.
  • The Australian Dollar will be guided by China’s inflation data for March.

The AUD/USD pair prints a fresh two-week high at 0.6635 in the early American session on Tuesday. The Aussie asset strengthens as the US Dollar extend its downside. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, fell to 103.95 despite traders paring big bets supporting the Federal Reserve (Fed) pivoting to rate cuts from the June meeting.

The S&P 500 is expected to open on a bullish note, suggesting cheerful market sentiment. The market sentiment could turn volatile amid uncertainty ahead of the United States Consumer Price Index (CPI) data for March, which will be published on March. The monthly headline and core inflation data are projected to have grown at a slower pace of 0.3% after rising by 0.4% in February. Though price pressures are expected to grow slowly, the pace at which monthly inflation is expected to grow is still higher than 0.17%, which is required for bringing down inflation to the 2% target.

Fed policymakers have been reiterating that it is appropriate to lower interest rates now as they lack confidence that inflation will sustainably return to 2%.

10-year US Treasury yields fell to 4.39% after Chicago Fed Bank President Austan Goolsbee warned that the Unemployment Rate could increase if interest rates remain high for too long.

Meanwhile, the Australian Dollar capitalizes on risk-on sentiment but will dance to the tunes of China’s CPI data for March, which will be published on Thursday. Monthly inflation is expected to have dipped 0.5% after rising 10% in February. The annual CPI data is anticipated to have increased moderately by 0.4% against the former reading of 0.7%. A decline in the inflation data indicates weak consumer spending.

As a proxy for China’s economic outlook, the Australian Dollar could face pressure if the China CPI data TURNS OUT softer than expected.

 

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