By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Gulf PressGulf Press
  • Home
  • Gulf News
    • Saudi Arabia
    • UAE24/7
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • World
  • Business
    • Market DataLive
    • Finance
    • Economy
    • Energy
    • Crypto
    • ForexHot
    • Tech
  • Sports
  • Lifestyle
  • Videos
Search
Countries
  • Saudi Arabia
  • UAE
  • Kuwait
  • Qatar
  • Bahrain
  • Oman
More Topics
  • Technology
  • Health
  • Entertainment
  • Crypto
  • Forex
  • Stocks
Site Links
  • Business Hub
  • Trending
  • Weather
  • Customize Interests
  • Bookmarks
  • Newsletter
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Reading: Australian Dollar strengthens despite weaker China inflation figures
Share
Notification Show More
Latest News
The Myriad Redefines Student Living for a Mobile, Urban Generation
UAE
L’Oréal Paris Welcomes Yasmine Sabri as New Brand Ambassador for the Middle East
Lifestyle
Roland Garros 2025: A New Era of Viewing, A Tribute to Legends, and Moments to Remember
Sports World
Bitget Celebrates Bitcoin Pizza Day by Distributing Over 5000 Pizzas in Over 20 Cities Worldwide
Crypto
Bitget Protection Fund Maintains Strength with $561 Million Average Value in April 2025
Business Crypto
Aa
Gulf PressGulf Press
Aa
  • Gulf News
  • World
  • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Videos
Search
  • Home
    • Videos
    • Business Hub
    • Trending
  • Gulf
    • Saudi Arabia
    • UAE
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • Business
    • Market Data
    • Crypto
    • Economy
    • Energy
    • Finance
    • Forex
    • Tech
  • More News
    • World
    • Lifestyle
    • Entertainment
    • Sports
Have an existing account? Sign In
Follow US
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Gulf Press > Business > Forex > Australian Dollar strengthens despite weaker China inflation figures
Forex

Australian Dollar strengthens despite weaker China inflation figures

News Room
Last updated: 2024/09/09 at 1:56 AM
News Room
Share
4 Min Read
SHARE

The Australian Dollar (AUD) has seen a resurgence against the US Dollar (USD) recently, supported by the hawkish sentiment surrounding the Reserve Bank of Australia (RBA). RBA Governor Michele Bullock’s comments last week indicated that it is too early to consider rate cuts, with the board not expecting any rate reductions in the near future. Despite softer inflation data from China, with Consumer Price Index (CPI) rising by 0.6% year-on-year in August, below market expectations, the Australian Dollar remains resilient.

RBC Capital Markets now anticipates a rate cut from the RBA at its February 2025 meeting, earlier than its previous forecast of May 2025. While inflation in Australia remains above the RBA’s target, slower economic growth is not seen as a strong enough reason for a rate cut this year. On the other hand, the US Dollar has received support from uncertainty surrounding a potential aggressive Fed rate cut in September, with markets currently expecting at least a 25 basis point cut by the Federal Reserve.

Recent economic data from the US, including Nonfarm Payrolls (NFP) adding 142,000 jobs in August and a decrease in the Unemployment Rate to 4.2%, have added to the uncertainty over a Fed rate cut. Austan Goolsbee, Federal Reserve Bank of Chicago President, noted that a policy rate adjustment from the Fed is imminent, aligning with market sentiment. The ADP Employment Change and US Initial Jobless Claims data also showed mixed results, with private-sector employment increasing by 99,000 in August, below estimates.

Australia’s trade surplus expanded in July, exceeding expectations, while the US JOLTS Job Openings dropped to the lowest level since January 2021 in July. Bank of America (BoA) has revised its growth forecast for China, lowering projections for 2024 and 2025, while Australia’s Gross Domestic Product (GDP) posted a 0.2% increase in the second quarter. Technical analysis of the Australian Dollar against the US Dollar shows the AUD/USD pair testing support near the 50-day EMA level at 0.6676, with potential resistance at the nine-day EMA around 0.6720.

The Australian Dollar’s value is influenced by various factors, including interest rates set by the RBA, the price of its top export, Iron Ore, the health of the Chinese economy, inflation, growth rate, and Trade Balance in Australia, as well as overall market sentiment. The RBA’s interest rate decisions play a crucial role in supporting or weakening the AUD. China’s economic performance directly impacts the Australian Dollar due to the close trade relationship between the two countries, particularly through the demand for Australian exports.

Iron Ore is a significant export for Australia, and its price fluctuations can impact the value of the Australian Dollar. Higher Iron Ore prices generally lead to a stronger AUD, as increased demand for the currency follows an increase in the commodity’s price. The Trade Balance, reflecting the difference between exports and imports, also influences the Australian Dollar’s value. A positive balance strengthens the AUD, while a negative balance can weaken it.

In conclusion, the Australian Dollar’s recent resilience against the US Dollar is driven by the hawkish sentiment surrounding the RBA, despite softer inflation data from China. Economic indicators from both Australia and the US have added to market uncertainty, with the potential for a Fed rate cut and fluctuations in trade balances impacting the AUD’s value. Overall, various economic factors and market sentiment continue to play a significant role in shaping the Australian Dollar’s performance in the foreign exchange markets.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
News Room September 9, 2024
Share this Article
Facebook Twitter Copy Link Print
Previous Article Sheikha Moza meets the First Lady of Brazil
Next Article Saudi Arabia’s economy outside of oil sector grows by 4.9% in second quarter: GASTAT – News
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3k Followers Like
69.1k Followers Follow
56.4k Followers Follow
136k Subscribers Subscribe
- Advertisement -
Ad imageAd image

Latest News

The Myriad Redefines Student Living for a Mobile, Urban Generation
UAE May 27, 2025
L’Oréal Paris Welcomes Yasmine Sabri as New Brand Ambassador for the Middle East
Lifestyle May 23, 2025
Roland Garros 2025: A New Era of Viewing, A Tribute to Legends, and Moments to Remember
Sports World May 22, 2025
Bitget Celebrates Bitcoin Pizza Day by Distributing Over 5000 Pizzas in Over 20 Cities Worldwide
Crypto May 22, 2025

You Might also Like

Forex

Pound Sterling Price Update and Prediction: GBP strengthens as risk sentiment improves

January 6, 2025
Forex

Elliott Wave Technical Analysis of NVIDIA Corp. (NVDA) [Video]

January 6, 2025
Forex

EUR/USD: Is it a Dead Cat Bounce? – OCBC

January 6, 2025
Forex

AUD/JPY maintains gains around 98.50 following PMI data release

January 6, 2025
Forex

NZD/USD edges up to nearly 0.5650 after China’s Caixin Services PMI

January 6, 2025
Forex

Japanese Yen bulls stay on the sidelines as USD/JPY remains steady above the mid-157.00s

January 6, 2025
Forex

Silver Price Prediction: XAG/USD bears in control below $30.00 near 200-day SMA

January 6, 2025
Forex

Gold price drops from multi-week high due to hawkish Fed expectations

January 6, 2025
//

Gulf Press is your one-stop website for the latest news and updates about Arabian Gulf and the world, follow us now to get the news that matters to you.

Quick Link

  • Privacy Policy
  • Terms of ue
  • Advertise
  • Contact

How Topics

  • Gulf News
  • International
  • Business
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our latest news instantly!

I have read and agree to the terms & conditions
Gulf PressGulf Press
Follow US

© 2023 Gulf Press. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

I have read and agree to the terms & conditions
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?