The Aussie is in the firing line. Overview for 21.03.2022

AUDUSD is falling amid global risk aversion. 

The Australian Dollar is falling against the USD early in the week. The current quote for the instrument is 0.7389.

AUDUSD moved away from its 2-week highs amid global risk aversion in financial markets. Risk is now the major trigger on all exchanges. 

In the meantime, Australian authorities are considering fighting the current inflation boost in the country. For example, they are discussing the measures to hold down the energy price surge, from budget resources. On 29 March, Australia is planning to announce a new federal budget, which may include the methods to control fuel prices, such as petrol excise duty holiday. 

In some Australian regions, the petrol price at the pump exceeded A$2.2, and it’s a great impact on both household budgets and consumer activities. The Australian government says that the fuel price surge may eventually damage the entire economic system of the country. 

The budget must be balanced in such a manner as to provide the economy with some local support and opportunities to further pursue the GDP growth plan. Many experts wonder how it will work out for Australia. 

This week, Australia is scheduled to release preliminary reports on Markit Manufacturing/Services PMIs for March. The data will be announced on Thursday and might have no serious influence on the AUD in case it is neutral. However, some negative numbers might put pressure on the Aussie.