Rabobank analysts share their short-term outlook for AUD/USD.
Fed likely to start cutting rates in September
“Looking out 5 days ahead, the Australian Dollar is the best performing G10 currency. Not only has the firmness of the AUD price data raised some concerns about the possibility of the RBA cutting rates, but the AUD data Softer US PMIs this week have provided some reassurance about the Fed's ability to ease rates in the coming months. As a result, the USD has retreated against most G10 currencies.
“In Rabo's view, the Fed is likely to start lowering rates in September. This suggests the prospect of a weaker dollar starting in the summer. Data released this week in the US and Australia have reinforced our view of that AUD/USD is likely to trend higher towards the end of the year and into 2025. However, in the short term, AUD/USD could struggle to extend this week's gains. This will likely depend on the US GDP release. and inflation PCE At the end of the week. The 200-day SMA is likely to offer resistance at 0.6529.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
