Australian Dollar Declines As European Shares Drop Ahead Of Fed Meeting
January 30 2023 - 11:41PM
RTTF2
The Australian dollar fell against its major counterparts on
Tuesday, as investors became cautious ahead of key central bank
meetings, including the Federal Reserve.
The Fed begins its two-day meeting today and will announce the
policy decision on Wednesday.
Economists expect that the central bank will raise rates by 25
basis points to a range of 4.50 percent to 4.75 percent.
The European Central Bank and the Bank of England are expected
to raise interest rates by 50 basis points at their monetary policy
meetings on Thursday.
Oil prices fell on concerns that further interest rate increases
by major central banks could lead to a slowdown in global
growth.
The aussie depreciated to 1-week lows of 0.7013 against the
greenback and 91.35 against the yen, from its early highs of 0.7065
and 92.13, respectively. The next possible support for the aussie
is seen around 0.68 against the greenback and 87.00 against the
yen.
The aussie weakened to 6-day lows of 1.5438 against the euro and
0.9421 against the loonie, off its early highs of 1.5352 and
0.9454, respectively. The aussie is seen finding support around
1.57 against the euro and 0.92 against the loonie.
The aussie retreated to 1.0886 against the kiwi, heading to
pierce its Asian session's 6-day low of 1.0885. If the aussie
slides further, 1.06 is likely seen as its next support level.
Looking ahead, Eurozone GDP data for the fourth quarter is due
in the European session.
Canada GDP data for November, as well as U.S. consumer
confidence index for January and FHFA's house price index and
S&P/Case-Shiller home price index for November will be featured
in the New York session.
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