The Australian Dollar (AUD) is endeavoring to rebound from recent losses, benefitting from a softer US Dollar (USD) and subdued US Treasury yields. The market, relatively quiet on Martin Luther King Jr. Day, has witnessed the Australian Dollar gaining traction amid speculation of potential US Federal Reserve rate cuts in March.
Barclays’ revised forecast, moving up the expected rate cut to March from June, has fueled market speculation. The Australian and New Zealand Banking Group Limited (ANZ) reported a 0.1% improvement in Australia’s job advertisements for December, reversing the previous decline of 4.6%.
Investors are closely monitoring upcoming economic data, including Westpac Consumer Confidence and TD Securities Inflation on Tuesday, along with Consumer Inflation Expectations and labor market data later in the week.
Former director of the People’s Bank of China (PBoC), Sheng Songchen, anticipates that China’s property downturn may persist for an additional two years before stabilizing, projecting a decrease in new-home sales nationwide.
Technically, the AUD/USD pair consolidates near the psychological level of 0.6700, positioning below the 14-day Exponential Moving Average (EMA) at 0.6721. A breakthrough above the EMA could propel the pair towards key resistance at 0.6750, while crucial support lies at 0.6650, coupled with the 38.2% Fibonacci retracement level at 0.6637.
