Audusd Dives On Sour Market Mood

 Audusd Dives On Sour Market Mood

Aud/Usd Dives Under 0.6500 On Sour Market Mood

During Monday's session, the AUD/USD continued on a bearish path as it traded under the 0.6500 handle. The Australian Dollar is under pressure due to improved appeal for the US Dollar & other similar assets.

Combining this with the fact that the greenback no longer has to fear March's rate cut makes sense for the AUD/USD to go down.

S&Amp;Amp;Amp;Amp; Amp;P 500 Futures Under Pressure

The appreciation of the USD isn't the only result of the Fed's recent actions. The S & amp; P 500 futures are downbeat, suggesting that the market sentiment isn't all happy.

As the prospects of rate cuts have now moved to June's meeting, the USD is gaining ground now against the AUD. The DXY can be seen trading close to 104.20, which is a multi-month high.

Despite the minimal chances of rate cuts in March, around 5% of economists still believe in a rate cut next month. However, these odds will only go down once we get more data from the US side.

The one critical fundamental event that changed the dynamics of AUD/USD was the NFP report. According to details, wage growth and labour demand are still strong, directly correlating to a more robust US economy.

This means the Fed can continue its policy actions against inflation without worrying about a recession or a weakness in the labour market.

That's why the interest rates in the USA will remain at their current levels until spring 2024. January's Services PMI (USA) is due, which is expected to jump from a reading of 50.6 to around 52.0 in January.

Elsewhere, the AUD will remain sensitive to the RBA's decision about the rate cuts, due later today. Considering this is the first meeting of the RBA in 2024, it will be an essential event for the AUD/USD.

According to consensus, the interest rate in Australia will remain at 4.35%. However, investors will pick cues on when the RBA will start cutting rates.

Trending Stories