Aussie keeps rising on Israel-Iran truce
The Australian dollar rose in Asian trade on Wednesday on track for the third straight profit against the US dollar, as the risk appetite improved in the markets following the Israel-Iran ceasefire.
Aussie’s gains are stymied by weak inflation data in Australia, boosting the odds of an RBA interest rate cut in July.
The Price
The AUD/USD price rose 0.25% today to $0.6508, with a session-low at $0.6488.
The Aussie rose 0.45% on Tuesday against the US dollar, the second profit in a row following the Israel-Iran ceasefire.
US Dollar
The dollar index fell 0.15% on Wednesday, expanding the losses for the third straight session against a basket of major rivals.
The US dollar has been hurt by bearish remarks from Fed Chair Jerome Powell, boosting the odds of a rate cut in the second half of the year.
Australian Inflation
Australia’s consumer prices rose 2.1% y/y in May, below estimates of 2.3%, and down from 2.4% in the previous reading.
Following the data, the markets now expect 70 basis points of interest rate cuts overall by the Reserve Bank of Australia by the end of the year.
The odds of a 0.25% rate cut in July rose from 65% to 75%.
The RBA cut interest rates twice since February to 3.85%, as inflation slowed to the 2-3T target.
Ripple rallies 7% as risk appetite rebounds
Ripple rose on Tuesday as most cryptocurrencies rebounded with investors shunning safe havens and flocking to riskier assets.
It comes amid optimism about the Israel-Iran ceasefire, backed strongly with US President Donald Trump.
Fed Chair Jerome Powell testified ahead of Congress that the Federal Reserve isn’t in a hurry to cut interest rates.
Trump continued his attacks against Powell and said he hoped Congress would take “this stubborn and stupid person” into account, adding that America will pay the price of “his stupidity” for many years to come.
Trump said there’s inflation in the US and the economy is doing great, and asked once more for interest rates to be down by two or three percentage points, which would save the government $800 billion a year.
Earlier data showed the Conference Board’s consumer sentiment survey in the US down 5.4 points to 93 points in June, while analysts expected 99.4.
Ripple
On trading, ripple surged 6.8% as of 21:09 GMT on Coinmarketcap to $2.21.
Gold drops 2% as investors shun safe havens
Gold prices fell on Tuesday even as the dollar fell against most major rivals, with investors shunning safe havens amid optimism about the Israel-Iran ceasefire.
Fed Chair Jerome Powell testified ahead of Congress that the Federal Reserve isn’t in a hurry to cut interest rates.
Trump continued his attacks against Powell and said he hoped Congress would take “this stubborn and stupid person” into account, adding that America will pay the price of “his stupidity” for many years to come.
Trump said there’s inflation in the US and the economy is doing great, and asked once more for interest rates to be down by two or three percentage points, which would save the government $800 billion a year.
Earlier data showed the Conference Board’s consumer sentiment survey in the US down 5.4 points to 93 points in June, while analysts expected 99.4.
Otherwise, the dollar index fell 0.6% as of 20:21 GMT to 97.8, with a session-high at 98.2, and a low at 97.7.
Gold spot prices fell 1.9% as of 20:22 GMT to $3332.3 an ounce.