AUD/USD Forecast: RBA and Fed's Policies Shape Market Outlook

Thursday, 26 September 2024, 06:56

AUD/USD exhibits strong gains as it retraces Wednesday's losses ahead of Fed Chair Powell's speech. The pair's movement is significantly influenced by inflation data and the Dollar Index. Traders are keenly watching economic indicators, making this a crucial moment for the AUD/USD trade.
Fxstreet
AUD/USD Forecast: RBA and Fed's Policies Shape Market Outlook

AUD/USD Climbs Back After Recent Losses

The AUD/USD pair bounces back strongly from Wednesday’s low of 0.6820 to near the round-level resistance of 0.6900 in Thursday’s North American session. The Aussie asset strengthens amid upbeat economic data and expectations surrounding the Federal Reserve's monetary policy.

Impact of RBA and Fed on AUD/USD Movement

  • Market participants are closely monitoring the RBA's recent decisions.
  • Fed Chair Powell's upcoming speech is critical for market sentiment.
  • Inflation trends could reshape the outlook for both currencies.

Dollar Index and its Role

As the Dollar Index showcases fluctuations, its influence on the AUD/USD can't be overlooked. A stronger dollar tends to pressure AUD, while easing inflation worries may empower the Aussie dollar. Traders are bracing for potential volatility in the wake of forthcoming economic announcements.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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