- AUD/USD is likely to extend its recovery above 0.6830 amid a weaker DXY.
- The FOMC minutes will display the agenda behind featuring a 75 bps rate hike in June.
- A consecutive 50 bps rate hike by the RBA is expected in July monetary policy meeting.
The AUD/USD pair is looking strong at open and is expected to extend its recovery after violating the critical hurdle of 0.6830. On Friday, the asset witnessed a strong rebound as the greenback bulls sensed exhaustion after failing to extend losses below 0.6763. A firmer recovery drove the asset above the psychological resistance of 0.6800 to a high of 0.6828 and more gains are expected from the counter on advancing downside risks for the US dollar index (DXY).
The DXY witnessed a steep fall after re-testing the year high at 105.79. Investors found the DXY an expensive bet at elevated levels after the release of the downbeat US Institute of Supply Management (ISM) data. The US ISM Manufacturing PMI landed at 53, lower than the expectations of 54.9 and the prior print of 56.1.
In addition to that, the Employment Index and New Orders Index remained vulnerable. So the all-together downbeat performance trimmed the odds of a consecutive 75 basis point rate hike announcement by the Federal Reserve (Fed) for its July monetary policy meeting.
This week, the release of the Federal Open Market Committee (FOMC) minutes will keep investors busy. The FOMC minutes will provide a detailed view of the agenda behind keeping an extreme hawkish stance on policy rates by the Fed in June.
On the aussie front, the spotlight will remain on the interest rate decision by the Reserve Bank of Australia (RBA), which is due on Tuesday. The RBA is expected to announce a consecutive 50 basis points (bps) rate hike in its monetary policy. This may elevate its Official Cash Rate (OCR) officially to 1.35%.
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
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.