DEK: Aussie dollar rises on better-than-expected data and Iran-US deal hopes, while US GDP growth slows. CATEGORY: Mercado Financeiro & Forex KEY_FACTS: - Australian Dollar advances 0.25% against US Dollar on Thursday. - Iran and US reportedly reach a deal, contributing to USD decline. - US GDP growth is slower than projected.
The Australian Dollar (AUD) started Friday's Asia session on a stronger note, recovering from the previous day's decline following the release of a soft Consumer Price Index (CPI). According to FXStreet, the AUD's improvement is attributed to better-than-expected data and hopes of a deal between Iran and the US. On Thursday, the AUD gained 0.25% against the US Dollar (USD) amid reports of an impending Iran-US agreement, which weakened the USD. Additionally, the US GDP growth rate was slower than anticipated, further contributing to the USD's decline.
UOB's economist Lee Sue Ann expects the Reserve Bank of Australia (RBA) to maintain the cash rate at 4.35%, citing softer Australian inflation and a cooling labor market. The RBA's decision is likely to be influenced by these factors, keeping interest rates on hold. With these developments, the Australian Dollar has found support, reversing some of the losses from the previous day's CPI release.
As the AUD continues to navigate market fluctuations, investors remain cautious about the economic outlook. While the Iran-US deal hopes and weak US GDP have provided temporary support to the AUD, the currency's long-term performance will depend on various factors, including domestic economic data and global market trends.