Australian Dollar Rises On Improving Risk Sentiment; CPI Awaited

Published on Jul 25, 2023 15:32

The Australia dollar is gathering momentum during the European session on Tuesday after a rally in copper following pledges by China to step up support for its economy. Oil hovering at a three month high also kept the currency supported. Improving risk sentiment as seen in European equities also aided the pair. Euro Stoxx 50, CAC 40 and FTSE 100 were higher by 0.3%, 0.2% and 0.1% respectively. Australian benchmark indices also ended higher by 0.5% at 7339 points. Copper is currently soaring by 2% and crossing $3.9 per pound mark, for the first time in a week, supporting the Australian dollar. AUDUSD is currently up half a percent at $0.6784. Meanwhile, investors are bracing for Australia CPI data due tomorrow alongside further clarity from the US federal Reserve monetary policy outcome.