• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
German Automobile Industry Association VDA: The EU must now speed up and make up its mind on the issue of free trade agreement.On April 3, the Reserve Bank of Australias latest report for the banking industry warned that continued uncertainty in US trade policy "could have a chilling effect on business investment and household spending decisions, and pose a significant headwind to the outlook for global economic activity and inflation." The Reserve Bank of Australia said there was also considerable uncertainty about the impact of possible changes in fiscal, regulatory and other government policies on global growth and inflation.The Hang Seng Index in Hong Kong opened on April 3 (Thursday) down 564.32 points, or 2.43%, to 22,638.21 points; the Hang Seng Technology Index opened on April 3 (Thursday) down 168.53 points, or 3.11%, to 5,257.91 points; the CSI 300 Index opened on April 3 (Thursday) down 219.05 points, or 2.57%, to 8,312.46 points; the H-share Index opened on April 3 (Thursday) down 61.24 points, or 1.59%, to 3,800.76 points.USD/CNY reported 7.1889, up 96 points (RMB depreciation); EUR/CNY reported 7.8414, up 588 points; HKD/CNY reported 0.92353, up 8.6 points; GBP/CNY reported 9.3903, up 740 points; AUD/CNY reported 4.5185, down 188 points; CAD/CNY reported 5.0650, up 142 points; JPY/CNY reported 4.8767, up 543 points; RMB/RUB reported 11.6222, down 103 points; NZD/CNY reported 4.1367, up 77 points; RMB/RMB reported 0.61947, up 27.1 points; CHF/CNY reported 8.1915, up 424 points; SGD/CNY reported 5.3478, down 143 points.Hang Seng Index futures opened down 2.64% at 22,600 points, 624 points below the water level.

AUD/USD struggles to maintain a price over 0.6720 due to risk aversion ahead of FOMC minutes

Daniel Rogers

Jan 04, 2023 14:59

 AUD:USD.png

 

The AUD/USD pair is under pressure throughout the Asian session to maintain above the immediate resistance level of 0.6720. As the risk-aversion theme influences the Australian Dollar, it is projected that the Aussie asset will retest the round-level support at 0.6700.

 

The negative close of the S&P500 on Tuesday and the dismal performance of the 500-stock U.S. index on a larger scale highlight market participants' pessimism. On Tuesday, the US Dollar Index (DXY) turned positive after tenaciously defending the 103.00 support. In contrast, demand for US government bonds soared, leading in a decline to 3.76 percent for 10-year Treasury yields.

 

Prior to the release of the Federal Open Market Committee (FOMC) minutes, there has been a significant spike in demand for the US Dollar Index. Investors eagerly await monetary policy outlook indicators for CY2023.

 

The current tight labor market and low unemployment rate in the United States present the Federal Reserve (Fed) with a considerable challenge in its pursuit of a 2% inflation rate. A continuation of the labor market's greater monthly job gains is attracting higher employment expenses to compensate for the labor shortage, which may encourage future retail demand.

 

The Australian Dollar is failing to capitalize on Caixin Manufacturing PMI data that exceeded expectations. IHS Markit reported economic data of 49.0, which is higher than the consensus estimate of 48.8 but lower than the prior release of 49.4. The market anticipated a decline in PMI figures after detecting negative signals in China's official Manufacturing PMI data and the precarious condition of Covid-19 in China.