GLOBAL OUTLOOK CHANGED BUT AUD BULLS REMAIN STRONG AS PREDICTED
The U.S. dollar rose in early European trade Wednesday with risk sentiment on the wane as central banks tighten monetary policy, likely weighing on global economic growth.
The Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% higher.
Central banks around the globe have started to respond to soaring inflation by tightening monetary policy, which had been very loose in the wake of the COVID-19 pandemic.
The U.S. Federal Reserve is expected to raise its benchmark funds rate by 50 basis points next week and again in July.
The risk-sensitive AUD/USD fell 0.4% to 0.7199 in the wake of Tuesday’s hike by the Reserve Bank of Australia
This has had an impact on the global economic outlook, with the World Bank reducing its estimate for global growth this year to 2.9% from a January prediction of 4.1%, citing soaring commodity prices, supply disruptions, and moves by central banks to hike interest rates.
Earlier Wednesday, India’s central bank raised the key interest rate for a second straight month by 50 basis points to 4.90%, which follows on from a similar move by the Reserve Bank of Australia on Tuesday.
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The Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% higher.
Central banks around the globe have started to respond to soaring inflation by tightening monetary policy, which had been very loose in the wake of the COVID-19 pandemic.
The U.S. Federal Reserve is expected to raise its benchmark funds rate by 50 basis points next week and again in July.
The risk-sensitive AUD/USD fell 0.4% to 0.7199 in the wake of Tuesday’s hike by the Reserve Bank of Australia
This has had an impact on the global economic outlook, with the World Bank reducing its estimate for global growth this year to 2.9% from a January prediction of 4.1%, citing soaring commodity prices, supply disruptions, and moves by central banks to hike interest rates.
Earlier Wednesday, India’s central bank raised the key interest rate for a second straight month by 50 basis points to 4.90%, which follows on from a similar move by the Reserve Bank of Australia on Tuesday.
This is an article not Financial Advice always do your own research
If you have questions you can write it in the comments below and I will answer them
And please don’t forget to support this idea with your likes and comments
