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  • Writer's pictureChris Broadfoot

Weekly Currency Update – March 17, 2024

The Australian Dollar faced a relatively average week as it found itself in both the red and green zones with major currencies. The Aussie was down 1.01% against the US Dollar and 0.56% against the Euro. However, it was up 0.09% against the British Pound and 0.34% against the Japanese Yen.


Early next week, the Eurozone will release its Consumer Price Index for February, which will help us understand the change in the price of goods and services compared to the last month. The report was previously at -0.4% and we are expecting it to increase to a steady 0.4% this week. 


Later in the week, the Federal Reserve will also release its interest rate decision for the month. This will significantly cause volatility in all the USD pairs throughout the week so be prepared. The interest rate was previously at 5.50% and the Fed is likely going to have it remain unchanged. 


Finally, Australia will also release its unemployment rate for February which helps us understand the percentage of the unemployed population looking for work. The unemployment rate for the previous month was 4.1% and we expect it to drop to 4.0% which is positive for the AUD. 


AUD/USD

The AUD/USD pair started the week strong at 0.662. For the next two days, there were no major movements until Wednesday, when the pair reached its weekly high of 0.663. Unfortunately, the pair only went downhill from there till it slowly closed at its weekly low point of 0.655.


The US released its Consumer Price Index for February which helps us measure the change in the price of goods and services from the consumer’s perspective. The CPI report was previously 0.4% and we expected it to drop to 0.3%. However, it remained unchanged which is positive for the USD.


Late last week, the US also released its core retail sales report which helps us understand the change in sales for retail goods. The report was previously significantly low at -0.8% and we expected to see it increase to 0.5%. However, it only increased to a mere 0.3% which is bearish for the USD. 


This past week, the US Dollar managed to overthrow the Australian Dollar by 1.01% as it faced quite a few positive economic reports throughout the week. Thus, the AUD was struggling in the red zone. 


GBP/AUD

The GBP/AUD pair started the week with volatility at 1.939. This was when it also reached its weekly high point of 1.944 before quickly crashing back down. The pair reached its weekly low of 1.928 the next day before showing volatility the entire week and finally closing at 1.939.


The UK released their unemployment rate for January early last week which helps us understand the percentage of UK residents who are currently unemployed. The rate was previously 3.8% and we expected it to remain the same. However, the unemployment rate increased to 3.9%.


The UK also released its GDP report for January late last week, which helps us understand the country's economy's health. The report for the previous month was -0.1% and we expected to see it increase to 0.2%. The GDP report for January came out to be 0.2% as expected for the UK.


This past week, the Australian Dollar managed to overthrow the British Pound by 0.09% as the UK was faced with an increasing unemployment rate among other bad economic data in the country. 

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