- AUD/USD recaptures 0.7500 amid hawkish RBA expectations.
- Leading Australian banks bring forward their RBA rate hike calls.
- The aussie April 2024 yields jump, focus shifts to the US Q3 GDP release.
AUD/USD is staging a decent comeback above 0.7500, in a turnaround from daily lows of 0.7480, as the investors shrug off the risk-off market mood amidst rising bets of an earlier rate hike by the Reserve Bank of Australia (RBA).
In evidence of increased hawkish expectations from the RBA, the Australian April 2024 bond yield jumped to 0.5%, five times higher than the central bank’s target of 0.1%. This comes after the country’s RBA Trimmed Mean CPI rose to 0.7% QOQ in Q3 vs. 0.5% expectations and 0.5% last. Additionally, the central bank did not buy AUD1.6 billion ($1.2 billion) of longer-dated securities to defend its yield target.
Surging price pressures fanned RBA rate hike calls, with the Commonwealth Bank of Australia (CBA) bringing forward its rate hike expectations to November 2022 from previous bets for a May 2023 hike. The bank said that Wednesday’s Q3 CPI data was an inflection point.
However, the renewed upside in the pair could lack follow-through buying, as the US dollar remains on the front foot amid persisting risk-off mood. The US earnings reports underscored the supply chain crisis amid the persistence of growing price pressures, weighing down on the investors’ sentiment.
Investors also remain cautious ahead of the critical US Q3 GDP release, which could throw further light on the economic recovery while the Fed remains on track to scale back bond-buying next month.
AUD/USD technical levels to consider
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.