At Extreme Investor Network, we provide expert analysis and insights into the stock market, trading strategies, and all things related to Wall Street. Today, we want to focus on some key factors that could impact the AUD/USD pair and what investors should be watching out for.
Aussie producer prices are a crucial indicator to keep an eye on as economists forecast a 0.7% increase in Q3 2024, down from 1% in Q2 2024. Soft producer prices could signal a further fall in inflation, which would be important for the RBA’s rate path. Producers lowering prices in a weakening demand environment can have implications for consumers and the overall economy.
AMP Head of Investment Strategy and Chief Economist Shane Oliver recently commented on inflation figures, highlighting the potential for a December RBA rate cut. This could have significant implications for the Australian dollar and investor sentiment towards the currency.
In addition, China’s Caixin Manufacturing PMI data could test investor optimism about stimulus measures. An increase above 50 in the PMI and expectations of more policy stimulus from Beijing could boost demand for the Aussie dollar, given China’s importance as a trading partner for Australia.
Looking at the Australian dollar’s daily chart, the upcoming US Jobs Report will also be a key factor influencing buyer demand for the AUD/USD pair. A lower US unemployment rate and strong nonfarm payrolls could reduce investor bets on a December Fed rate cut, potentially pulling the AUD/USD below key support levels.
On the other hand, any unexpected rise in the US unemployment rate and less than stellar nonfarm payroll numbers could reignite speculation about a December Fed rate cut. This could drive the AUD/USD pair higher towards important resistance levels.
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