AUD/USD stabilizes above 0.6900 with Fed Powell’s speech on the horizon
- AUD/USD clings to gains above 0.6900 ahead of Fed Powell’s speech.
- An expected acceleration in the US core PCE inflation has weighed on market expectations for the Fed's large rate cut in November.
- The Australian Dollar outperforms its major peers on China’s massive stimulus to uplift the economic growth.
The AUD/USD holds gains above the key level of 0.6900 in Monday’s European session. The Aussie asset strengthens as the Australian Dollar (AUD) performs strongly on the announcement of China’s fiscal support to revive their economic prospects.
Australian Dollar PRICE Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.19% | -0.09% | 0.26% | 0.11% | -0.23% | -0.19% | 0.35% | |
| EUR | 0.19% | 0.11% | 0.46% | 0.33% | 0.03% | 0.03% | 0.62% | |
| GBP | 0.09% | -0.11% | 0.48% | 0.22% | -0.08% | -0.08% | 0.51% | |
| JPY | -0.26% | -0.46% | -0.48% | -0.10% | -0.55% | -0.42% | 0.14% | |
| CAD | -0.11% | -0.33% | -0.22% | 0.10% | -0.29% | -0.30% | 0.29% | |
| AUD | 0.23% | -0.03% | 0.08% | 0.55% | 0.29% | 0.00% | 0.59% | |
| NZD | 0.19% | -0.03% | 0.08% | 0.42% | 0.30% | -0.00% | 0.56% | |
| CHF | -0.35% | -0.62% | -0.51% | -0.14% | -0.29% | -0.59% | -0.56% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
Their cabinet reported on Sunday that it will focus on solving outstanding economic problems and strive to complete annual economic and social development goal, Reuters reported. It is worth noting that Australia is the leading trading partner of China and signs of an improvement in the latter’s economic performance strengthens the appeal of the Aussie Dollar.
However, the Caixin Manufacturing PMI sank in September to 49.3 from the former reading of 50.4. A figure below the 50.0 threshold is itself considered as contraction in activities in the manufacturing sector.
Meanwhile, the US Dollar (USD) exhibits a weak performance ahead of the Federal Reserve’s (Fed) Chair Jerome Powell’s speech, which is scheduled at 17:00 GMT. Investors would look for fresh cues about the likely monetary policy action from the Fed in November.
According to the CME FedWatch tool, the probability of the Fed to reduce interest rates by 50 basis points (bps) to 4.25%-4.50% in November has eased sharply to 38.3% from 53% last week. Market speculation for Fed large rate cuts eased after the release of the United States (US) core Personal Consumption Expenditure Price Index (PCE) data on Friday, which rose expectedly to 2.7% in August from 2.6% in July.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
