The Australian Dollar (AUD) faced challenges despite robust economic data from China in the fourth quarter. China's GDP exceeded expectations, alongside stronger-than-anticipated Retail Sales and Industrial Production figures for December. These factors initially suggested potential gains for the AUD/USD pair. However, a dovish stance from the Reserve Bank of Australia (RBA) and external pressures, such as former U.S. President Donald Trump's tariff plans, may restrict significant upward movement.
Early Friday, the AUD/USD pair maintained a position above 0.6200, showing resilience amid mixed market sentiments. The bias in the market remains tilted toward bullish activity, although the RBA's softer monetary posture could act as a ceiling for further gains. Meanwhile, the Federal Reserve is anticipated to cut rates twice this year, which may introduce additional volatility into the currency pair's performance.
In parallel, gold prices consolidated during the Asian session on Friday after reaching a one-month peak the previous day. Traders opted for a brief pause, reflecting on recent market developments and adjusting their strategies accordingly. These movements highlight the complex interplay of global economic indicators and monetary policy decisions influencing asset prices.
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