AUSTRALIAN DOLLAR SHOWS MILD GAINS ON REDUCED USD STRENGTH
- Australian Dollar records modest gains due to waning USD strength.
- Australian Q2 GDP meets expectations but relies heavily on government spending.
- US job openings decrease, indicating potential labor market easing, which weighs on USD.
The AUD/USD saw mild gains on Wednesday, rising to 0.6720 amid reduced USD strength. This move followed the release of Australian Q2 GDP data, which met expectations but highlighted the economy's reliance on government spending and subdued private domestic demand. This weakness supports the case for the Reserve Bank of Australia (RBA) to ease monetary policy in the near term. Michelle Bullocks will speak on Thursday.
Given the uncertain economic outlook in Australia and the Reserve Bank of Australia's (RBA) aggressive stance on monetary policy due to persistent inflation, financial markets anticipate only a 0.25% reduction in interest rates in 2024.
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