AUD/USD Continues to Hold Strong Above 0.6900
- Market Expectations for Fed Rate Cut in November Affected by US Core PCE Inflation
- Australian Dollar Outperforms Peers on China’s Economic Stimulus
Australian Dollar Strengthens on China’s Fiscal Support
In Monday’s European session, the AUD/USD maintains its gains above the crucial level of 0.6900. The Australian Dollar shows resilience as China announces significant fiscal measures to boost its economic growth.
Australian Dollar Price Today
The table below illustrates the percentage change of the Australian Dollar (AUD) against major currencies. Notably, the AUD performed strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
This move by China is crucial for Australia, as it is China’s primary trading partner. Positive signs in China’s economic performance enhance the attractiveness of the Australian Dollar.
Caixin Manufacturing PMI Decline
However, the Caixin Manufacturing PMI dropped to 49.3 in September from 50.4, indicating a contraction in the manufacturing sector’s activities.
US Dollar Weakness Ahead of Fed Chair Powell’s Speech
The US Dollar exhibits weakness before Fed Chair Jerome Powell’s speech scheduled for 17:00 GMT. Investors await insights into the Fed’s potential monetary policy actions in November.
Market speculation on Fed rate cuts has subdued after the release of the US core PCE Price Index data, which showed a rise to 2.7% in August from 2.6% in July. This data has influenced expectations for Fed rate adjustments.
Analysis
The AUD/USD pair’s resilience above 0.6900 amidst China’s economic stimulus and the US Dollar’s weakness indicates shifting market sentiments and potential impact on future currency movements. As investors monitor Fed policies and economic indicators, the Australian Dollar’s performance against major currencies offers valuable insights into global economic trends and trade dynamics.