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Market Update 08/03/2024

Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX.


The Aussie dollar surged against the US dollar during the mid-North American session as Fed Chairman Jerome Powell testified before the US Senate Banking Committee. Powell’s statement that rates have peaked and his indication of potential rate cuts later in the year boosted the Aussie dollar.

Powell’s confidence in achieving the Fed’s inflation target, combined with soft US jobs data, underpinned the AUD/USD pair, causing it to rebound from weekly lows and reclaim the 100 and 200-day moving averages (DMAs). The US ADP National Employment Report revealed that private companies added 140K jobs, just short of the expected 150K, but increased from the 111K job increase reported in the prior month.

Despite a weak local GDP report the previous day, the AUD/USD pair is currently trading at 0.65647, up 0.68% on the day.

Additional weakness in the Greenback coincided with an equally strong pullback in US yields amidst ongoing speculation about the timing of the Fed’s first rate cut, expected in June.

Locally, the RBA’s cautious approach, as one of the last major central banks to consider interest rate cuts, has helped constrain the pair’s downside potential.

Looking ahead today, Goods Trade Balance figures from Australia and China will draw interest. On the US front, traders are focused on Unemployment Claims, Revised Nonfarm Productivity data, and Balance of Trade, along with Powell’s testimony at the US House of Representatives. 


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