AUD/USD is moving powerfully towards the weekly price level of 0.7127. This is because of the correction of risk-on stimuli, and the USD is losing its hold once more. AUD/USD regained all its in-day losses, and its expected to record more gains in today’s trading sessions.
The strengthening of the Australian dollar started after the RBA (Reserve Bank of Australia) governor supported an additional rate increase. This rate increase, is expected to be announced in the next RBA’s monetary policy. Increasing price forces are pushing for the declaration of a rate increase come next month: June. He mentioned that narrowing policy; will push the imbalance between supply and demand towards balance. The previously mentioned factors will affect the price of AUD price. The housing market is lively, but the disturbance in the worldwide material supply chain and increasing material cost is cutting the housing market gains.
Other Contributing Factors to the AUD/USD Price Action
Moving on, the Australian Retail Sales will be released this week by the Australian Bureau of Labor Statistics. Investors are advised to prepare for some impact on the economic data because it is expected to fall to 0.9% as opposed to the previous 1.6%.
During this, the Dollar index received some bids after it failed to break the 102 resistance level. The dollar index has maintained its weak performance as investors keep supporting the positive market mood. During today’s trading periods, attention will be on the Federal Open Market Committee minute. This is because the FOMC minute is expected to guide the decision-making supporting adoption of the 50 bps interest rate increase choice. These generally affect the AUD/USD price.
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