- AUD/USD is struggling in extending its recovery above 0.6670 ahead of Fed policy.
- RBA policymakers still believe that Australian inflation could show volatility in the inflation monthly figures.
- A two-day winning spell in S&P500 is conveying confidence among investors despite fears of potential banking shakedown.
The AUD/USD pair is facing barricades in extending its recovery move above the immediate resistance of 0.6670 in the early Asian session. The Aussie asset is expected to remain volatile ahead as investors are awaiting the Federal Reserve (Fed) monetary policy for fresh impetus. The Australian Dollar remained in action on Tuesday after the release of the Reserve Bank of Australia (RBA) monetary policy minutes.
According to the RBA minutes, policymakers were considering a pause in the tightening process just after a two-month fall in the monthly Consumer Price Index (CPI) numbers. However, RBA policymakers still believe that Australian inflation could show volatility in the inflation figures on a month-on-month basis. Also, the surety lacks that inflation has peaked now.
Meanwhile, S&P500 continued its recovery move firmly on Tuesday, portraying a steep rise in the risk appetite of the market participants. A two-day winning spell is conveying confidence among investors despite fears of potential banking shakedown after the collapse of three mid-size United States banks in a span of one week.
The US Dollar Index (DXY) has shown a recovery move from the cushion of 103.00 and sheer volatility is expected as investors are likely to react to changing odds for the interest rate decision by the Fed. Odds for an unchanged policy are solid as the street anticipates that further rate hikes by the fed would be unable to restore the confidence of investors after banking sector fiasco. Also, investors are worried that a liquidity influx of $30 billion into First Republic Bank is unable to get the institution out of trouble.
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 remains depressed near 1.0700 ahead of Lagarde, US data
EUR/USD is trading close to 1.0700, on the defensive in the European session. The US Dollar is extending post-US NFP gains amid cautious optimism, as investors assess the Fed rates outlook. Eurozone Sentix data slumps to -17.1 in June. Lagarde, US data awaited.
GBP/USD drops below 1.2400 amid firmer US Dollar
GBP/USD is falling below 1.2400 amid a notable US Dollar demand, dragging the major lower for the second successive day on Monday. Markets repricing of the Fed interest rates outlook push the US Treasury bond yields higher, in turn, the US Dollar. US ISM Services PMI next of note.
Gold finds short-term cushion above $1,940, more downside looks solid
Gold price has found a short-term cushion near $1,943.00, however, more downside seems favored. Gold price witnessed an intense sell-off after a mean-reversion move to near the 200-period EMA at $1,977.32.
Pro-XRP attorney says Ripple has 25% chance of winning against SEC, Judge could announce verdict by September
Ripple has a 25% chance of winning its legal battle against the US SEC, according to pro-XRP attorney John Deaton. Over the weekend, Deaton shared his opinion on Ripple’s likelihood of both an outright win and a partial victory.
Services PMIs the next focus after last week’s bumper US jobs report
While US markets finished the week on a high, after another bumper jobs report and a positive week across the board, markets in Europe, while finishing the week on a high, struggled to match the exuberance of investors on the other side of the Atlantic.