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Australian dollar looks vulnerable after weak domestic GDP, China Services PMI
Wednesday, 4 December 2024 09:04 WIB | AUD/USD |Dollar Australia,

The Australian dollar (AUD) moved lower in response to weak domestic Gross Domestic Product (GDP) growth figures. Given that headline inflation in Australia has eased to the central bank's target range of 2%-3%, slower growth could put pressure on the Reserve Bank of Australia (RBA) to respond with lower interest rates.

Furthermore, fresh US export curbs on China, concerns about China's fragile economic recovery, and tariffs to be imposed by US President-elect Donald Trump turned out to be other factors weighing on the China-proxy Australian currency.

On the other hand, the US dollar (USD) continued to be supported by expectations of a less dovish Federal Reserve (Fed), although investors preferred to wait for more cues on the future path of interest rate cuts.

This, in turn, helped the AUD/USD pair to hold above the weekly low and multi-month trough touched on Tuesday. Traders might also prefer to wait for Fed Chair Jerome Powell's speech later today. In addition, the US Nonfarm Payrolls (NFP) report will influence the US interest rate outlook and provide fresh directional impetus.

Source: FXStreet

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