AUD/USD portrays the market’s risk-on mood as it prints the biggest daily gains in more than a month, rising 0.90% intraday to refresh daily tops near 0.6635 during early Monday morning in Asia. In doing so, the risk-barometer pair cheers the US authorities’ actions to tame the risks emanating from the Silicon Valley Bank (SVB) and Signature Bank.
Also read: US Treasury Department, Fed unveil action plan on Silicon Valley Bank fallout
That said, US Treasury Department, Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) took joint actions to tame the risks emanating from the SVB and Signature Bank. “All depositors of Silicon Valley Bank and Signature Bank will be fully protected,” said the authorities in a joint statement released a few minutes back. S&P 500 Futures and US Treasury bond yields consolidate the previous day’s losses after the late plan for the US authorities to tame the financial crisis.
Also read: Regulators close Signature bank, announce plan to make depositors whole
It should be noted, however, that the fears of the Aussie pair’s pullback are high amid the fading of the risks emanating from SVB and Signature Bank. The reason could be linked to Friday’s US jobs report. On Friday, United States Nonfarm Payrolls (NFP) grew more than 205K expected to 311K in February, versus 504K (revised), while the Unemployment Rate rose to 3.6% for the said month compared to 3.4% expected and prior. Further, the Average Hourly Earnings rose on YoY but eased on monthly basis for February whereas the Labor Force Participation increased during the stated month.
Although the fears of the Fed hawks’ return and downbeat AUD/USD are high, the Federal Reserve (Fed) officials’ two-week ahead of the monetary policy meeting may probe the bears.
Though, the US Consumer Price Index (CPI) for February, up for publishing on Tuesday, will precede the Retail Sales and preliminary readings of the Michigan Consumer Sentiment Index for March, up for publishing on Wednesday and Friday, will be crucial for traders to watch.
At home, the latest dovish hike of the Reserve Bank of Australia (RBA) may gain attention if Thursday’s headline Aussie employment data and RBA Bulletin print downbeat outcomes.
A sustained upside break of the five-week-old descending resistance line, around 0.6665 by the press time, becomes necessary to recall the AUD/USD bulls.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.