The Australian Dollar saw gains amidst a subdued US Dollar environment, with the Australian equity market contributing to its upward movement. Analysts anticipate the People's Bank of China (PBoC) to implement two additional Reserve Requirement Ratio (RRR) cuts in 2024, as per a Bloomberg survey. Meanwhile, the US Dollar struggled amid expectations of the Federal Reserve initiating a cycle of interest rate cuts from June onwards.
During Tuesday's trading, the Australian Dollar rose, buoyed by the weakening US Dollar during early Asian trading. However, a slight dip followed the release of Australia's Westpac Consumer Confidence data for March 2024, which decreased by 1.8% to 84.4 from February's 86.0.
The Australian equity market received a boost from expectations of a rate cut, stemming from a decline in Australian consumer confidence. Despite modest declines on Wall Street, the ASX 200 Index extended its winning streak. Investors await the release of Australia's monthly Consumer Price Index (CPI) data with keen interest.
The US Dollar Index (DXY) registered a second consecutive day of losses, largely due to falling US Treasury yields. Market sentiment leans towards expectations of the Federal Reserve initiating an easing cycle, with speculation pointing towards a potential start in June.
In technical analysis, the Australian Dollar traded close to the significant level of 0.6550 on Tuesday. A breakthrough above this level could encounter immediate resistance around 0.6550, along with the nine-day Exponential Moving Average (EMA) at 0.6554.
A successful breach might propel the AUD/USD pair towards testing the 38.2% Fibonacci retracement level at 0.6565. Conversely, if the price retreats, notable support levels are observed at the psychological mark of 0.6500, followed by March’s low at 0.6477.
AUD/USD: Daily Chart
The price of the Australian dollar today
The table below shows how the Australian Dollar (AUD) has changed in percentage terms against the main currencies listed today. The Australian dollar was the strongest against the Swiss franc.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.12% | -0.13% | -0.06% | -0.12% | -0.04% | -0.25% | 0.05% | |
| EUR | 0.12% | -0.02% | 0.06% | 0.01% | 0.09% | -0.11% | 0.17% | |
| GBP | 0.13% | 0.01% | 0.07% | 0.02% | 0.10% | -0.09% | 0.18% | |
| CAD | 0.06% | -0.07% | -0.07% | -0.05% | 0.03% | -0.17% | 0.13% | |
| AUD | 0.10% | -0.02% | -0.03% | 0.04% | 0.07% | -0.15% | 0.14% | |
| JPY | 0.03% | -0.10% | -0.11% | -0.03% | -0.06% | -0.19% | 0.07% | |
| NZD | 0.22% | 0.10% | 0.10% | 0.16% | 0.10% | 0.19% | 0.28% | |
| CHF | -0.04% | -0.17% | -0.18% | -0.11% | -0.16% | -0.08% | -0.28% |
Paraphrasing text from "FX Street" all rights reserved by the original author.
