AUD Dollar Shines Today! Sets New Record After Rebound

The AUD Dollar continues to rise today after recovering from a three-month low of 0.6508 on Thursday. The US Dollar (USD) is experiencing negative pressure due to mixed economic data from the United States. The increase in the Producer Price Index (PPI) data provides additional support to the AUD, giving a positive boost to the AUD/USD pair.

The Australian Bureau of Statistics released the Q4 PPI, showing an improvement with growth of 4.1%, surpassing the previous figure of 3.8%. Increases in the Australian money market also support the strengthening of the Aussie Dollar. Analysts predict that the Reserve Bank of Australia (RBA) will maintain interest rates stable at 4.35% during the February policy meeting.

Despite high interest rate expectations according to Warwick McKibbin, a former RBA board member, bond traders still anticipate an earlier rate cut following weak quarterly inflation reports. The futures market projects a two-quarter point reduction in 2024, with the first adjustment expected in August.

The US Dollar Index (DXY) fell after mixed US economic data, supported by weak US Treasury yields. Although Initial Jobless Claims rose, the ISM Manufacturing PMI showed improvement. Additional labor data is scheduled to be released on Friday, including US Average Hourly Earnings and Nonfarm Payrolls (NFP).

Market Movers Brief: The Australian Dollar strengthens thanks to positive Australian Producer Price Index (PPI) data.

1. The growth of Australia’s Producer Price Index (QoQ) reached 0.9% in Q4, down from the previous figure of 1.08%.
2. Investment loans for Australian homes decreased by 1.3% in December, down from a previous growth rate of 1.9%.
3. Australian home loans fell by 5.6% in December, compared to a growth of 0.5% in November.
4. US non-farm productivity rose by 3.2% in Q4, surpassing the estimate of 2.5% but down from the previous figure of 4.9%.
5. US Challenger layoffs rose to 82,307 in January from 34,817 in December.
6. US Unit Labor Costs reported an increase of 0.5% in Q4, far from the estimate of 1.7%, with a change from the previous figure recording -1.1%.

Disclaimer!

The analysis "AUD Dollar Today Shines! Sets New Record After Rebound" is based on fundamental and technical views from trusted sources and does not constitute advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct independent research on other forex information as a reference for your trading.

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