Australian Dollar struggles amid robust US economic data
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The AUD/USD pair remains under pressure, hovering around 0.6528 on Friday. Efforts to stabilize the exchange rate have seen limited success. The stronger-than-expected economic data from the US has dampened hopes for extensive interest rate cuts by the Federal Reserve this year. The capital market currently anticipates only a 40-basis point reduction. The Reserve Bank of Australia (RBA) is considering initiating its monetary easing policies towards the end of 2024. Recent data indicates that the unemployment rate dropped to 3.7% in February, the lowest since September 2023, while inflation remained steady at 3.4% for the third consecutive month. A recent Westpac report highlights the RBA's need for greater confidence in the inflation outlook before seriously contemplating a rate cut. Technical analysis suggests a bearish outlook for the AUD/USD pair, with a potential continuation of the downward wave towards 0.6404. The MACD indicator supports this bearish outlook. The Stochastic oscillator suggests potential short-term corrections within a broader downward trend.
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