- The Australian dollar extends its winning streak for fourth consecutive session on Thursday.
- The Bank of the Australian Reserve is expected to carry out a rate of 25 basic points in July.
- The United States and Iran could meet next week, but Trump expressed doubts about the need for a diplomatic solution.
The Australian dollar (Aud) advances against the US dollar (USD) on Thursday, continuing its winning streak for the fourth consecutive day. The Aud/USD pair remains strong in the middle of a better appetite for risk, driven by a high fragile fire between Israel and I will be mediated by the US. Operators will probably focus on developments around the conversations between the US and Iran and conflicts in the Middle East.
The president of the USA, Donald Trump, said that the United States (USA) and they would celebrate a meeting next week, but questioned the need for a diplomatic solution on Iran’s nuclear program, citing the damage that US bombardments had caused to key sites, according to Bloomberg.
The softest inflation data in Australia, together with the recent weakest GDP figures than expected, reinforce the expectations of a 25 basic points rate cut by the Bank of the Australian Reserve (RBA) in July. The operators also expect a total of 73 basic points of interest rate cuts for the end of the year.
The Australian dollar can be seen while the US dollar fights in the middle of a cautious tone of the president of the Fed, Powell
- The American dollar index (DXY), which measures the value of the US dollar compared to six main currencies, is quoted around 97.60 at the time of writing.
- The president of the USA, Donald Trump, could announce a successor for the president of the Federal Reserve (Fed), Jerome Powell, for September or October. Trump could consider the former governor of the Fed, Kevin Warsh, and the director of the National Economic Council, Kevin Hassett, according to the Wall Street Journal.
- The president of the FED, Jerome Powell, said Wednesday that Trump’s tariff policies could cause temporary price increase, but they could also lead to more persistent inflation. The Fed must be cautious when considering additional rate cuts.
- Powell highlighted during his testimony before the Budget Committee of the Congress on Tuesday, strengthening his case to delay the cuts of fees, probably until some moment of the quarter quarter. Powell added: “When the right time is, wait for rates cuts to continue.” He also said that the data suggests that at least some of the tariffs will affect consumers and begin to see more tariff inflation from June.
- The president of the Fed of Minneapolis, Neel Kashkari, reaffirmed the waiting position and see of the Fed about the possible impacts of tariffs on inflation and the economy in general before making firm decisions about the movement of interest rates.
- Kansas City Fed president Jeff Schmid said early Wednesday that the Central Bank should wait to see how uncertainty about tariffs and other policies impacts the economy before adjusting interest rates. Schmid added that the resilience of the economy gives us time to observe how prices and economy develop, according to Bloomberg.
- An US intelligence report indicated that American attacks on Iranian nuclear sites have delayed Tehran program only for a few months, according to Reuters. In addition, Iranà Foreign Minister Abbas Araghchi said that the country’s nuclear program continues, according to the local news agency to Arabiya.
- Australia’s monthly consumer price index (CPI) increased a 2.1% year -on -year in May. Inflation was softer than market expectations of an increase of 2.3% and the previous 2.4%, relieving after staying constant for three consecutive months.
- The purchasing managers index (PMI) of S&P manufacturing Global Australia remained constant in a 51.0 reading in June. Meanwhile, the PMI of Services rose to 51.3 from the previous reading of 50.6, while the compound PMI improved to 51.2 in June from 50.5 above.
The Australian dollar maintains its position above the 0.6500 support near the nine -day EMA
The AUD/USD is quoted around 0.6510 on Thursday. The technical analysis of the newspaper suggests a persistent bullish bias since the torque is maintained within the ascending channel pattern. The 14 -day relative force (RSI) index is positioned above the 50th mark. In addition, the pair remains above the nine -day exponential mobile (EMA) average, indicating that the impulse of the short -term price is stronger.
On the positive side, the Aud/USD torque could aim at the maximum of seven months of 0.6552, which was recorded on June 16, followed by the upper limit of the upward channel around 0.6570.
Immediate support seems to be in the nine -day EMA of 0.6494. A rupture below this level would weaken the impulse of the short -term price and put downward pressure on the AUD/USD torque to test the lower limit of the ascending channel around 0.6460, aligned with the 50 -day EMA at 0.6442.
AUD/USD: Daily graphic
Australian dollar Price today
The lower table shows the percentage of change of the Australian dollar (AUD) compared to the main currencies today. Australian dollar was the strongest currency against the US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.13% | -0.19% | -0.20% | -0.06% | -0.13% | 0.01% | -0.09% | |
| EUR | 0.13% | -0.00% | -0.14% | 0.10% | 0.05% | 0.15% | 0.07% | |
| GBP | 0.19% | 0.00% | -0.10% | 0.10% | 0.05% | 0.18% | 0.06% | |
| JPY | 0.20% | 0.14% | 0.10% | 0.18% | 0.13% | 0.22% | 0.14% | |
| CAD | 0.06% | -0.10% | -0.10% | -0.18% | -0.04% | -0.02% | -0.03% | |
| Aud | 0.13% | -0.05% | -0.05% | -0.13% | 0.04% | 0.03% | 0.02% | |
| NZD | -0.01% | -0.15% | -0.18% | -0.22% | 0.02% | -0.03% | -0.01% | |
| CHF | 0.09% | -0.07% | -0.06% | -0.14% | 0.03% | -0.02% | 0.01% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Australian dollar of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the Aud (base)/USD (quotation).
Faqs Australian dollar
One of the most important factors for the Australian dollar (Aud) is the level of interest rates set by the Australian Reserve Bank (RBA). Since Australia is a country rich in resources, another key factor is the price of its greatest export, iron mineral. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and commercial balance. The feeling of the market, that is, if investors are committed to more risky assets (Risk-on) or seek safe shelters (Risk-Off), it is also a factor, being the positive risk-on for the AUD.
The Australian Reserve Bank (RBA) influences the Australian dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of the interest rates of the economy as a whole. The main objective of the RBA is to maintain a stable inflation rate of 2% -3% by adjusting the interest rates or the low. Relatively high interest rates compared to other large central banks support the AU, and the opposite for the relatively low. The RBA can also use relaxation and quantitative hardening to influence credit conditions, being the first refusal for the AU and the second positive for the AUD.
China is Australia’s largest commercial partner, so the health of the Chinese economy greatly influences the value of the Australian dollar (Aud). When the Chinese economy goes well, it buys more raw materials, goods and services in Australia, which increases the demand of the AU and makes its value upload. The opposite occurs when the Chinese economy does not grow as fast as expected. Therefore, positive or negative surprises in Chinese growth data usually have a direct impact on the Australian dollar.
Iron mineral is the largest export in Australia, with 118,000 million dollars a year according to data from 2021, China being its main destination. The price of iron ore, therefore, can be a driver of the Australian dollar. Usually, if the price of iron ore rises, the Aud also does, since the aggregate demand of the currency increases. The opposite occurs when the price of low iron ore. The highest prices of the iron mineral also tend to lead to a greater probability of a positive commercial balance for Australia, which is also positive for the AUD.
The commercial balance, which is the difference between what a country earns with its exports and what it pays for its imports, is another factor that can influence the value of the Australian dollar. If Australia produces highly requested exports, its currency will gain value exclusively for the excess demand created by foreign buyers who wish to acquire their exports to what you spend on buying imports. Therefore, a positive net trade balance strengthens the AUD, with the opposite effect if the commercial balance is negative.
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.
