AUD to USD Forecast: China’s Rates Decision and US Labor Data in Focus
==========
On Thursday, June 20, the People’s Bank of China will set the one-year and five-year loan prime rates. Economists expect the PBoC to leave the 1-year and 5-year loan prime rates (LPR) unchanged at 3.45% and 3.95%, respectively. Lower lending rates may increase borrowing, business investment, and consumer spending. China accounts for one-third of Australian exports. Australia has a trade-to-GDP ratio of over 50%, with 20% of its workforce in trade-related jobs. Better Australian labor market conditions could increase wages and disposable income and fuel consumer spending and demand-driven inflationary pressures. Later in the session on Thursday, US labor market and manufacturing sector data warrant investor attention. US jobless claims and the Philly Fed Manufacturing Index will likely influence the AUD/USD more. Economists forecast initial jobless claims to fall from 242k to 235k in the week ending June 15. A larger-than-expected fall in jobless claims could reduce investor expectations of a September Fed rate cut. Tighter labor market conditions would support uptrends in wage growth and disposable income. The Fed could respond by leaving interest rates unchanged. A higher-for-longer Fed rate path may raise borrowing costs and reduce disposable income and consumer spending.
#Aud/usd #China #UsLaborMarket #InterestRates #EconomicIndicators
https://www.fxempire.com/forecasts/article/aud-to-usd-forecast-chinas-rates-decision-and-us-labor-data-in-focus-1439709
FX Empire /
npub1lj…9zjdc
2024-06-20 01:26:04
Author Public Key
npub1ljmz9hjq6kkwm5ltqfc6dpw9ytalhtnf7sgp4r75dqvtsq2wz9sqp9zjdcSeen on
wss://relay.damus.ioPublished at
2024-06-20 01:26:04Event JSON
{
"id": "580cb54a9d87bce4074353f7dfeb8783610cf46edb855e6747e92ef961ea591b",
"pubkey": "fcb622de40d5acedd3eb0271a685c522fbfbae69f4101a8fd46818b8014e1160",
"created_at": 1718846764,
"kind": 1,
"tags": [],
"content": "AUD to USD Forecast: China’s Rates Decision and US Labor Data in Focus\n==========\n\nOn Thursday, June 20, the People’s Bank of China will set the one-year and five-year loan prime rates. Economists expect the PBoC to leave the 1-year and 5-year loan prime rates (LPR) unchanged at 3.45% and 3.95%, respectively. Lower lending rates may increase borrowing, business investment, and consumer spending. China accounts for one-third of Australian exports. Australia has a trade-to-GDP ratio of over 50%, with 20% of its workforce in trade-related jobs. Better Australian labor market conditions could increase wages and disposable income and fuel consumer spending and demand-driven inflationary pressures. Later in the session on Thursday, US labor market and manufacturing sector data warrant investor attention. US jobless claims and the Philly Fed Manufacturing Index will likely influence the AUD/USD more. Economists forecast initial jobless claims to fall from 242k to 235k in the week ending June 15. A larger-than-expected fall in jobless claims could reduce investor expectations of a September Fed rate cut. Tighter labor market conditions would support uptrends in wage growth and disposable income. The Fed could respond by leaving interest rates unchanged. A higher-for-longer Fed rate path may raise borrowing costs and reduce disposable income and consumer spending.\n\n#Aud/usd #China #UsLaborMarket #InterestRates #EconomicIndicators\n\nhttps://www.fxempire.com/forecasts/article/aud-to-usd-forecast-chinas-rates-decision-and-us-labor-data-in-focus-1439709",
"sig": "b9d2be34dca2db634945e03c8d688ba95968d3535b144f3ec041f116b46310fc5fbdd38685c4ead8357bb8bd04c7cc435afae9af79f035a72832e7d340f3b3cc"
}