Australian Dollar stuck near 0.6300 as PCE data fails to shift sentiment
The Australian Dollar (AUD) remains directionless during Friday’s American session, with AUD/USD hovering around the 0.6300 zone. The release of the US Personal Consumption Expenditure (PCE) Price Index failed to generate significant market reaction, as the figures aligned with expectations except for the core PCE, which ticked slightly higher than forecasts. The Aussie struggled to gain ground despite weaker demand for the US Dollar, as caution persists over trade tensions and the Federal Reserve’s (Fed) uncertain policy outlook.
Australian Dollar steady after uneventful US PCE print
AUD/USD continued to range around the 0.6300 zone following the release of the February PCE inflation data, which came broadly in line with market forecasts.
San Francisco Fed President Daly reiterated that two rate cuts remain likely in 2025, but emphasized the need for patience as inflation and tariffs evolve.
Broader risk sentiment was weighed down by fresh US auto tariffs and the looming April 2 deadline for reciprocal trade measures.
The Australian Dollar remained vulnerable, with risk appetite softening and demand for safe-haven assets—like Gold—rising to new all-time highs.
Markets continue to anticipate a rate cut from the Fed later this year, but near-term bets remain cautious amid mixed economic signals.
Hopes for additional economic stimulus from China helped limit losses in the Aussie, given Australia’s strong export ties to the Chinese market.
Despite the Fed’s cautious stance, the US Dollar lacked conviction as traders shifted focus toward macro risks and geopolitical developments.
The US Dollar Index remains capped below key resistance at 105.00, with technicals suggesting range-bound movement in the near term.
Investor positioning remains net short on AUD, with bearish bets building amid prolonged global trade and inflation uncertainty.
Source: Fxstreet
