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Australian Dollar Weakens as Chances of RBA Cut Rates Sooner Increase
Wednesday, 18 December 2024 10:24 WIB | AUD/USD |Dollar Australia,AUD,

The Australian Dollar (AUD) extended its decline for the second straight session against the US Dollar (USD) on Wednesday (18/12). Traders are bracing for a potential 25 basis point interest rate cut by the US Federal Reserve (Fed) later in the North American session.

The AUD is also facing headwinds as traders increase their bets that the Reserve Bank of Australia (RBA) will cut rates sooner and more significantly than previously expected. However, the upcoming decision will be data-driven, with evolving risk assessments guiding the RBA's approach.

The US Dollar (USD) remains solid amid market caution ahead of the Fed's decision. According to the CME FedWatch tool, markets are now almost fully pricing in a quarter-basis point cut at the Fed's December meeting. Additionally, traders will be closely monitoring Fed Chair Jerome Powell's press conference and the Summary of Economic Projections (dot-plot) following the meeting.

The US Census Bureau reported on Tuesday that US Retail Sales rose 0.7% MoM in November, compared to a 0.5% increase previously. Meanwhile, the Retail Sales Control Group rose 0.4% from a previous decline of 0.1%.


Source: FXStreet

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