US dollar falls, gold prices rise as China cuts key interest rate
USD weakens against AUD, approaching 0.6600
Gold rally sustains momentum
Following year-to-date lows experienced recently, gold prices have continued their upward trajectory. Currently hovering near $2050 per ounce, the precious metal is not far from its historic highs around $2100. Global uncertainty and building fear may be causing traders to flock to gold as a flight to quality.
China implements lending rate cut to boost economy
In a move to stimulate demand and support economic growth, China has reduced its 5-year loan prime rate (LPR) by 25 basis points. This rate cut, which exceeded expectations, is aimed at rejuvenating the Chinese economy, particularly through sectors like real estate, signifying a proactive approach by Chinese authorities. The move arrives as Chinese stocks (FXI) sit near multi-year lows.
Anticipated rate cuts in the US
While the US Federal Reserve has yet to implement any rate cuts in 2024, market expectations (CME FedWatch tool) suggest multiple cuts totaling 100 basis points by year-end. Traders are closely monitoring developments in Fed policies, economic indicators, and global events that could influence the timing and extent of future rate adjustments.
How to trade AUD/USD
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on AUD/USD
Trading forex requires an account with a forex broker like tastyfx. AUD/USD can be found under the 'Majors' pairs tab. Many traders also watch other major forex pairs like GBP/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s YouTube channel. Our curated playlists can help you stay up to date on current markets and understanding key terms. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
This information has been prepared by tastyfx, a trading name of tastyfx LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. tastyfx accepts no responsibility for any use that may be made of these comments and for any consequences that result. See our Summary Conflicts Policy, available on our website.
