AUD/USD Is Slightly Higher, Approaching Two-Week Highs Around 0.6630

In early Asian trading on Wednesday, the Australian dollar/US dollar rose slightly to a two-week high near 0.6630. AUD/USD is trying to gain clarity around the 104.00 mark ahead of Wednesday’s release of U.S. March consumer price index (CPI) inflation data and Fed meeting minutes.

Chicago Fed President Austan Goolsbee, a prominent dovish member of the Fed’s board of directors, said on Monday that the recent jobs report was “pretty strong” but that the Fed must consider situations where it would not hurt economic growth. How long can the current interest rate policy be maintained? Goolsby added that if interest rates remain high for too long, unemployment could move higher. Minneapolis Fed President Neel Kashkari expects two interest rate cuts this year, but he questioned whether lower rates are necessary if inflation remains sideways.

Fed Chairman Jerome Powell and many Fed officials have emphasized that the main factor in the central bank’s decision to cut interest rates is when or whether inflation returns to the Fed’s 2% target. Investors will pay close attention to U.S. inflation data, which may provide some signals on the path of inflation and the path of monetary policy. Inflation is estimated to have hit an annual rate of 3.4% in March. Higher-than-expected inflation could dampen expectations for a rate cut by the Federal Reserve in June, while weak inflation could increase market expectations for a rate cut.

AUD latest articles

Popular exchange rates

foreign exchange

fxcurrencyconverter is a forex portal. The main columns are exchange rate, knowledge, news, currency and so on.

© 2023 Copyright