AUD/USD hopes a positive start this week ahead of PBOC’s Interest rate decision
- AUD/USD braces a positive start following the firmer performance of last week.
- Speeches from Fed Chair Jerome Powell and RBA’S Governor Philip Lowe will hold significant importance.
- The risk-on impulse will keep the aussie underpinned against the greenback.
The AUD/USD pair is likely to carry-forward the last weeks’ decent performance amid a risk-on impulse in the FX domain and may open on a positive note on Monday. The Aussie found a firmer buying interest after displaying a subdued performance in the first trading session of the last week.
This week the investors will keep an eye over the interest rate decision from the People’s Bank of China (PBoC), which is due on Thursday. It is worth noting, that the PBoC kept its policy rate unchanged at 3.7% despite a resurgence of Covid-19 in the Chinese economy. Australia, being a leading exporter to China may find some decent buying interest if PBoC reduces their rates.
Adding to that, the speech from the Reserve Bank of Australia (RBA)’s Governor Philip Lowe will remain a major driver for the spot. The speech from the RBA’s Chair Philip Lowe will guide the investors about the likely monetary policy action from the RBA in April.
Meanwhile, Australia’s administration has decided to ban alumina exports to Russia. Russian economy addresses 20% of its alumina needs from Australia and on that Australian government has claimed that the move will limit Russia's capacity to produce aluminum, which is a critical export for Russia, as per Reuters. On the contrary, the antipodean has announced that it will donate at least 70,000 tonnes of thermal coal to Ukraine hat will help the nation in meeting its energy needs.
On the dollar front, the US dollar index (DXY) is likely to remain subdued after the announcement of an interest rate hike by the Federal Reserve (Fed) last week. This week the speech from the Fed’s Chair Jerome Powell will keep the DXY investors on their toes, which is due on Wednesday.