The Australian dollar (AUD) recorded four consecutive wins and climbed by 1.82% in the week of 22 April 2024.
AUD Looks To End April On A Positive Note
At the time of reporting, the currency has retained its strong footing and, in the European session, traded 0.24% up against the US dollar (USD) at 0.6534. Economists attributed this robust performance to the country’s Q1 Producer Price Index (PPI) data, which reflected a year-on-year growth of 4.3% and outstripped the predicted 2.6%. PPI for Q4 2023 came in at 4.1%.
The Q1 Consumer Price Index, on the other hand, decreased from 4.1% to 3.6%. It did, however, top forecasts of 3.4%. This pattern is expected as producers and suppliers hike prices, which in turn increases consumer inflation.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
Markets are now turning their eyes to the Reserve Bank of Australia to see how these indicators will influence current Australian interest rates. Most believe that the central bank will stick to its ‘higher for longer’ position, which means that it may keep interest rates unchanged. Others predict an interest rate hike in the wake of monetary policymakers’ concerns about a springback in inflation.
Globally, leading economies are hesitant to drop interest rates as inflation stubbornly stays above the 2% gauge. The US Bureau of Economic Analysis reported that the Personal Consumption Expenditures Price Index, which is the US Federal Reserve’s preferred inflation yardstick, increased by 0.8% in March 2024.
The AUD closed the week’s trading on Friday, 26 April 2024 at 1.5302 to the USD.
