AUD/USD stabilizes on Powell's speech

The Australian dollar fluctuated higher during the Asian session to see its third straight session retreat from its lowest since January 4th against the US dollar, following an interview by Federal Reserve Governor Jerome Powell and following the economic developments and data that been released by the Australian economy, On the eve of the talk of Deputy Reserve Bank of Australia Governor Guy Debelle, in addition to the economic developments and data expected on Tuesday by the US economy, the largest economy in the world.

At 02:48 GMT, the AUD/USD rose 0.01% to 0.7071 compared to the opening levels of 0.7070 after a high of 0.7081 and a low of 0.7058.

We also followed the Australian economy's release of the Australian National Bank of Business Confidence Index, which showed a contraction of 2% to 4% in January, coinciding with the release of housing market data with the Home Loan Index reading showing contraction retreated to 2.6% from 6.0% in December which was lower than the anticipated 2.0% decline.

Otherwise, investors are now looking to what will be the outcome of a speech by deputy chair of the Reserve Bank of Australia whom also in charge of Risk Management Committee "Guy Debelle" under the title "Climate Change and Economics" in Sydney.

On the other hand, we followed US' Fed Governor Jerome Powell's brief remarks through a pre-recorded video at the Fair Economy Conference held under the National Alliance, hours after he spoke in CBS 60 minute  interview, in which he talked about interest rates and economic prospects as well as financial stability.

In contrast, the markets are currently looking for the US economy to release inflation data with the release of the Consumer Price Index (CPI), which may reflect 0.2% growth versus stability at zero levels in January, while the core reading of the index itself may show a 0.2% A little change from what it was in January, and the index's annual reading may also reflect growth stability at 1.6%.

The annual Core reading of the CPI may also show a 2.2% growth rate, unchanged from the previous January reading, before we see Federal Reserve Vice President and Federal Open Market Committee member Lael Brainard deliver a speech under the title "Updating the Community Reinvestment Act" at the The NCRC Annual Conference by the Coalition for Reinvestment of National Society.