Australian Dollar Slides In Cautious Trade
July 24 2022 - 10:20PM
RTTF2
The Australian dollar weakened against its most major
counterparts in the Asian session on Monday, as investors became
cautious ahead of the U.S. Federal Reserve's interest rate decision
and the release of a key data from Australia.
The Fed will hold its policy meeting on July 26-27, when it is
expected to raise rates by 75 basis points.
The Australian Bureau of Statistics will release inflation data
for the second quarter on Wednesday. Economists forecast CPI to
rise to 6.2 percent year-on-year, up from 5.1 percent in the first
quarter.
The data is expected to intensify rate hike expectations from
the Reserve Bank of Australia.
Oil prices fell on fears that aggressive interest rate hikes
from the Fed would reduce global fuel demand.
The aussie touched 4-day lows of 0.6878 against the greenback
and 1.4804 against the euro, after rising to 0.6926 and 1.4732,
respectively in early deals. The aussie may locate support around
0.67 against the greenback and 1.50 against the euro.
The aussie depreciated to 93.89 against the yen, its lowest
level in ten days. The aussie is poised to challenge support around
the 88.00 mark.
In contrast, the aussie rebounded to 0.8947 against the loonie
and 1.1089 against the kiwi, off its early low of 0.8900 and a
4-day low of 1.1053, respectively. The aussie is seen finding
resistance around 0.92 against the loonie and 1.12 against the
kiwi.
Looking ahead, Germany Ifo business confidence survey results
for July are due in the European session.
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