AUSTRALIAN DOLLAR SHOWS SIGNS OF RECOVERY – 26 APRIL 2023
AUSTRALIAN INFLATION AND US DURABLE GOODS ORDERS DATA, AUD/USD HOLDS GROUND AT 0.6600. The Australian dollar (AUD) has shown some signs of recovery after hitting a fresh five-month low of 0.6614. However, the downside remains favored as the US Dollar Index (DXY) continues to show strength and negative market sentiment persists. Investors are worried about the interest rate guidance from the Federal Reserve (Fed), which has triggered a V-shaped recovery in the USD index from a weekly low of 101.20. The Fed is set to announce its monetary policy for May next week, with a 25 basis points (bps) interest rate hike expected. The street was earlier anticipating that the Fed would pause its quantitative tightening regime after this interest rate hike. The S&P500 settled Tuesday’s session on a bearish note, despite upbeat earnings from Microsoft and Google. Banking jitters renewed after First Republic Bank reported a sharp decline in customers’ deposits, requiring it to raise funds fo...