The Australian Dollar races ahead against its peers, including the US Dollar, as MACD has made a bullish move further to rally the couple to its 100-day Simple Moving Average.
Chair Jeremy Powell reportedly tempered the talks to hike the rate by 75-basis points, sparking a response of higher risk in the times to come. It would spread across the equity market, with traders piling into short-term Treasury markets to take the yields on the lower side.
Meanwhile, the Federal Reserve remains dovish in its approach to fuel the pullback in the US Dollar.
Dovish nature follows the decision of the Reserve Bank of Australia to hike the benchmark rate by 35 bps. Such a move comes as a surprise to experts and traders on the popular Australian forex brokers list, punched in by Governor Philip Lowe.
Trade data for the Australian Dollar is scheduled to go public at 1:30 GMT, many expecting at least some rook for the currency to accommodate a climb in its value. Additional buying could be triggered based on the data.
Analysts’ expectations are high when it comes to seeing a trade surplus in Australia, and the figure is estimated to increase from AUD 7.46 billion to AUD 8.4 billion in March. What appears to be the factor behind this growth is a rebound in exports in recent days.
Technically, the AUD/USD couple is below its 100-day Simple Moving Average after the 20-day Simple Moving Average crosses the mark below the 200-day Simple Moving Average. These figures pose resistance to fluctuations shortly; however, the RSI oscillator draws closer to its midpoint, and MACD is on the path to crossing its signal line.
The APAC region could have a larger impact after China’s PMI data from Caixin crosses the wire. It is estimated that the PMI data for China could stand at 40.0 for April, down from 42.0 in March.
The Covid wave is likely to be a factor behind the increased rate of expected contraction as China goes in for more lockdowns in major cities like Shanghai. According to the last report made public, USD/CNH was lower for the second time in the morning.
The inflation rate for the Philippines is expected to cross the wire with a drop at 4.6% on a year-to-year basis, as quoted by a survey that Bloomberg conducted. Singapore’s PMI data for April is also likely to cross wires at nearly the same moment.
Overall momentum for the entire Asia-Pacific region is bullish from Wall Street’s point of view. The US stocks gained to portray the year’s best performance as the benchmark S&P 500 added 2.99% for the biggest one-day rally since May 2020.
S&P to soon report the purchasing manager’s index for Hong Kong during April.