AUD/USD SOARS TO 0.6718 AMID CATASTROPHIC SVB BANK COLLAPSE

Daily price movements:

AUD/USD currency pair opens the first day of a new week at 0.6575, with an intraday high of 0.6718 and a low of 0.6577. The pair trades at 0.6716 at the press time, up by 2.11% on the day, just below Monday’s ATH price.

The recent issues with Silicon Valley Bank (SVB) and Signature Bank have highlighted the vulnerable state of US banks, which has dampened expectations for additional interest rate increases from the Federal Reserve (Fed). As a result, Goldman Sachs now predicts a delay in rate hikes in March, and the Fed Fund futures (*) have reduced the likelihood of a 0.50% increase in the Fed rate.

Consequently, the US Dollar Index (DXY) has fallen to its lowest level in a month, trading near 103.60 at the press time.

* Fed Fund futures directly reflect collective marketplace insight regarding the future course of the Federal Reserve's monetary policy. (Source: CME Group’s website)