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MACRO REPORT
During yesterday’s trading session, the AUD/USD pairing reached towards the 50-Day EMA and 200-Day EMA but once again failed to sustain its upward movement.
The pair eased slightly to around 0.6550 due to declining commodity prices.
Despite yesterday’s Aussie wage growth figures, which showed a 0.9% QoQ wage growth in Q4 2023, which was lower than the previous quarter’s 1.3% surge, it did not alter the outlook for Australian interest rates or the Aussie dollar.
In saying that, the reduced risk of a wage-price spiral, coupled with a weakening labour market and subdued consumer spending, sets the stage for potential rate cuts by the RBA.
The USD reacted little to the FOMC’s minutes from its 30‑31 January policy meeting, where most participants expressed concerns about moving too quickly to ease interest rates. By contrast, only a few participants highlighted the risks of delaying rate cuts.
Overall, the market appears to be stuck in a holding pattern, with traders uncertain about its direction.
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