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AUD.USD extended its losses on Monday, likely due to the RBAs less hawkish stance after it decided to keep its interest rate unchanged at 4.35% on Tuesday. Markets were anticipating more hawkish stance, fueled by last week’s inflation data, which exceeded expectations.
A slow start to the week for financial markets as investors await the key economic data releases later in the week. Wall St was mixed, with the Nasdaq closing +0.3%, the S&P 500 flat and the Dow Jones -0.2% on the day. while U.S. 10-year yields were unchanged
The DXY continues to gain ground as traders digest Friday’s key economic data and cautious comments from Fed officials regarding interest rate cuts. the US PPI inflation data is the focus of the week and will be the catalyst for upcoming market directions.
Economic data to watch out for.
• AU – Commonwealth Budget
• JP – PPI y/y
• EU – Fed Chair Powell, ECB’s Knot Speak
• FI – Bank of Finland Press Conference on Financial System Stability
• UK – BOE Chief Economist Huw Pill speaks.
• UK – Average Weekly Earnings 3M/y/y
• UK – ILO Unemployment Rate 3Mths
• US – PPI Final Demand m/m
• US – NFIB Small Business Optimism
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6607 |
| AUD/NZD | 1.0974 |
| AUD/JPY | 103.25 |
| AUD/CNY | 4.7835 |
| AUD/EUR | 0.6122 |
| AUD/GBP | 0.5261 |
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