The Australian dollar today fell intraday around 0.6645 after reversing early strength in the Asian session due to mixed macro factors and cautious sentiment ahead of this week's important data/events. Today's forex news about AUD/USD is summarized directly from the FxStreet.com website. It should be noted that the Aussie pair managed to bounce off a one-month low the previous day, but is currently struggling to maintain recent gains. Despite China's ban on Micron Technology products, according to a Wall Street Journal (WSJ) report, US President Joe Biden expressed hope that relations with China would improve "soon" at the Group of Seven (G7) summit in Japan on Sunday. The report also said that the alleged spy balloon earlier this year had damaged relations, but optimism remained. Policymakers also said that their talks with Republican House Speaker Kevin McCarthy went well and they planned to resume talks on Monday. In an announcement on Monday, the People's Bank of China (PBOC) decided to keep its monetary policy benchmark, the Loan Prime Rates (LPR), unchanged. Accordingly, the latest PBOC LPRs for one-year and five-year tenors are 3.65% and 4.30%. Earlier, the China Securities Journal (CSJ) had raised hopes for China's economic recovery and supported the strengthening of AUD/USD to maintain the rebound from the previous day, despite the pair's recent decline. Previously, there was an increase in market bets for a 0.25% interest rate hike by the Federal Reserve (Fed) in June, while calls for a rate cut in 2023 declined. This was due to the optimistic US economic conditions last week and hawkish comments from Fed officials. However, it is worth noting that Federal Reserve Chairman Jerome Powell also expressed concerns about inflation on Friday. However, he also stated that the recent banking crisis, which led to tightening credit standards, has reduced pressure to raise interest rates. In this context, S&P 500 Futures look uncertain, while stocks in Asia-Pacific are trading lower. This is due to the cautious mood in the market ahead of today’s key US debt ceiling talks, PMI talks between Australia and the US this week, and the release of the Fed Minutes.


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Warning!
 
This analysis is based on fundamental and technical views from trusted sources, not advice or invitation. Always remember that this content is intended to enrich the reader's information. Always use independent research first regarding other forex information to be used as a reference in your trading.

 

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