The Australian Dollar has recently declined on Tuesday’s trades against the US Dollar as the speculation that the US Federal Reserve might lift interest rates four times weighed on the currency this year. The Aussie Dollar also fell against a basket of currency during the said period.
US Federal Reserve Chair Jerome Powell was the reagent behind the said decline. Powell had his first public attendance before the US House Financial Services Committee in the course of the gathering.
Reserve Bank of Australia also known as RBA, conducts monetary policy and works to maintain a strong financial system in Australia.
“I think each of us is going to be taking the developments since the December meeting into account and writing down our new rate paths as we go into the March meeting,” Powell told reports. “We’ve seen some data that will, in my case, add some confidence to my view that inflation is moving up to target. We’ve also seen strength around the globe and we’ve seen fiscal policy become more stimulative.”
Investors took his word as a signal and such had an impact in the financial market situation during the session. This has consequently increased the values of the US bond yields and the US dollar. However, a decline on US stocks was seen as well.
“[The] US dollar rallied to near a two-week high and US 10-year Treasury yields rose to an intraday high of 2.92%, supported by hawkish comments from Powell,” Strategist Elias Haddad told reports.
In its most recent analysis, the performance of the Aussie Dollar against the US Dollar added 0.35% to 0.00274 points. It potentially can close at its current high of 0.78127.
The Coppock Curve has unfortunately remained below the negative region in its recent trades. It is currently at -1-.1720 which would recommend as well for the pair. This will be supported with the news above as such is not the only pair suffering from declines.
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