- The Australian dollar advances since a fire has been agreed between Iran and Israel.
- The optimistic data of the PMI of S&P Global Australia attenuated the expectations that the RBA cut the interest rates in the short term.
- The governor of the Fed, Michelle Bowman, declared that the time to cut the interest rates is approaching.
The Australian dollar (AUD) can be seen against the US dollar (USD) on Tuesday, extending its profits per second consecutive session. The Aud/USD torque gains ground after the US president Donald Trump said that the fire between Iran and Israel has agreed. Trump said that a high “complete and total” fire between Israel and Iran will enter into force to put an end to the conflict between the two nations.
Iran shot missiles against the Udeid Air Base in Qatar on Monday. Qatar officials said that the brainstorm was intercepted and that the base had been evacuated in advance. Trump announced late on Saturday that he had “annihilated” the three nuclear facilities of Iran, including Fordow, Natanz and Isfahan, in attacks during the night. The Iranian Parliament approved a measure to close the Ormuz Strait.
The latest optimistic data of the Global S&P S&P (PMI) index index revealed that Australia’s private sector grew at its second fastest pace in ten months, weakening the expectations of short -term rate cuts by the Bank of the Australian Reserve (RBA).
The Australian dollar can be seen while the US dollar maintains losses amid a better market feeling
- The dollar index (DXY), which measures the value of the US dollar compared to six main currencies, is being negotiated around 98.20 at the time of writing. The dollar faced challenges after the dovish comments of the Federal Reserve officials (FED).
- The Vice President of Supervision of the Fed, Michelle Bowman, said on Monday that the time to cut the interest rates, since the risks to the labor market can be increasing. Bowman also stressed that inflation seems to be on a sustained road back to 2%, and is less concerned that tariffs cause an inflationary problem.
- The governor of the Federal Reserve (Fed), Christopher Waller, said Friday that the Central Bank of the US could begin to make monetary policy moreland as soon as next month, pointing out flexibility in the midst of global economic uncertainty and the increase in geopolitical risks.
- The Fed decided to maintain the stable interest rate at 4.5% in June, as expected widely. The Federal Open Market Committee (FOMC) still foresees around 50 basic points of interest rate cuts until the end of 2025.
- The president of the FED, Jerome Powell, warned that the continuous uncertainty of the policy will keep the Fed in a position of maintaining the fees, and any rate cut will depend on an additional improvement in the labor and inflationary data.
- The Popular Bank of China (PBOC) decided to keep its preferential loan rates (LPR) without changes on Friday. The LPR at one year and five years were 3.00% and 3.50%, respectively.
- 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 previously.
The Australian dollar proves the nine -day Ema about 0.6500
The AUD/USD is negotiating around 0.6480 on Tuesday. The technical analysis of the daily graph shows a rebirth of the bullish bias, since the pair has bouncing towards the pattern of ascending channel. In addition, the 14 -day relative force index (RSI) has moved slightly above the 50 -branded brand, strengthening the bassist bias. However, the pair is still below the nine -day exponential (EMA) mobile average, indicating that the short -term pricing impulse is weaker.
The Aud/USD torque is mainly testing the nine -day EMA at 0.6480. A successful rupture above this level would reinforce the upward feeling and lead to the torque to approach the maximum of seven months of 0.6552, which was recorded on June 16, followed by the upper limit of the upward channel around 0.6600.
In the lower part, the immediate support seems to be at the lower limit of the upward channel around 0.6440, aligned with the 50 -day EMA in 0.6435. A rupture below this crucial support zone would help the bearish bias to grow and exert down pressure over the aud/USD torque to test the “backward support” around the psychological level of 0.6400. A break below this level could lead to the region around 0.5914, the lowest level since March 2020.
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 Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.11% | -0.12% | -0.34% | -0.04% | -0.34% | -0.31% | 0.17% | |
| EUR | 0.11% | -0.04% | -0.24% | 0.07% | -0.22% | -0.63% | 0.30% | |
| GBP | 0.12% | 0.04% | -0.20% | 0.12% | -0.18% | -0.61% | 0.19% | |
| JPY | 0.34% | 0.24% | 0.20% | 0.31% | -0.03% | -0.00% | 0.39% | |
| CAD | 0.04% | -0.07% | -0.12% | -0.31% | -0.31% | -0.71% | 0.07% | |
| Aud | 0.34% | 0.22% | 0.18% | 0.03% | 0.31% | -0.41% | 0.37% | |
| NZD | 0.31% | 0.63% | 0.61% | 0.00% | 0.71% | 0.41% | 0.78% | |
| CHF | -0.17% | -0.30% | -0.19% | -0.39% | -0.07% | -0.37% | -0.78% |
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.
