The Australian Dollar Rises on Inflation
2024-06-26
Summary:
On Wednesday, the dollar edged up as Fed officials signaled no rush for rate cuts. The Aussie dollar rose on inflation hitting a six-month high.
EBC Forex Snapshot, 26 Jun 2024
The dollar inched higher on Wednesday as Fed officials continue to signal they are in no rush to kick off a rate cut cycle. A jump in inflation to a six-month high sent the Aussie dollar higher.
Consumer prices rose 4% last month from a year earlier in Australia, compared with the 3.8% rate expected for May by economists. That was propelled in part by automotive fuel price.
The RBA has said it won’t hesitate to raise its key interest rate if it loses confidence that inflation can fall back within its 2%-3% target by the end of next year.
| Citi (as of 17 Jun) | HSBC (as of 26 Jun) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0688 | 1.0981 | 1.0619 | 1.0854 |
| GBP/USD | 1.2612 | 1.2860 | 1.2582 | 1.2822 |
| USD/CHF | 0.8885 | 0.9158 | 0.8849 | 0.9018 |
| AUD/USD | 0.6564 | 0.6729 | 0.6578 | 0.6708 |
| USD/CAD | 1.3577 | 1.3846 | 1.3590 | 1.3755 |
| USD/JPY | 151.86 | 158.26 | 156.55 | 161.37 |
The green numbers in the table indicate that the data has increased compared with the previous time; the red numbers indicate that the data has decreased compared with the previous time; and the black numbers indicate that the data has remained unchanged.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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