AUD/USD Current Price: 0.6664
- The RBA Meeting Minutes had a limited impact on the Aussie amid retaining the hawkish tilt.
- The Reserve Bank of New Zealand will announce its monetary policy decision on Wednesday.
- AUD/USD pressures the lower end of its weekly range, bearish momentum absent.
The AUD/USD pair trades in the 0.6660 price zone ahead of the Asian opening, little changed from its daily opening. The pair eased early on Tuesday, weighed down by the poor performance of global indexes while barely affected by local news.
Australia published May Westpac Consumer Confidence, which improved to -0.3% from -2.4% in April. Additionally, the Reserve Bank of Australia (RBA) released the Minutes of its May monetary policy meeting, which maintained the overall hawkish stance adopted in the previous meeting. Policymakers considered raising interest rates but decided keeping the Official Cash Rate (OCR) was the better choice. Furthermore, the Broad agreed it's difficult to either rule in or rule out future changes in the cash rate, while risks around the forecasts were judged to be “balanced.” Finally, the document showed policymakers will try to avoid “excessive fine tunning” by looking at a near-term variation in inflation.
Australia will not release relevant macroeconomic data on Wednesday, although news from neighbouring New Zealand may affect the Aussie. The Reserve Bank of New Zealand is set to announce its decision on monetary policy after leaving the OCR unchanged at 5.50% for five consecutive meetings.
AUD/USD short-term technical outlook
The AUD/USD pair bottomed at 0.6645, now an immediate support level. The daily chart shows the bearish potential remains limited, although the pair keeps losing upward momentum. AUD/USD keeps developing above all its moving averages, with the 20 Simple Moving Average (SMA) heading north above directionless 100 and 200 SMAs. In the meantime, technical indicators turned marginally lower within positive levels, lacking strength enough to confirm an upcoming leg lower.
The AUD/USD pair is neutral-to-bearish in the near term. The 4-hour chart shows a mildly bearish 20 SMA contains advances at around 0.6680, while the longer moving averages maintain their bullish slopes far below the current level. Finally, technical indicators seesaw around their midlines without clear directional strength.
Support levels: 0.6645 0.6600 0.6570
Resistance levels: 0.6680 0.6715 0.6770
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
GBP/USD holds recovery gains above 1.2900 ahead of BoE policy decision
GBP/USD builds its recovery momentum above 1.2900 in European trading on Thursday, moving away from its lowest level since mid-August. Traders adjust their positions ahead of the key BoE and Fed monetary policy announcements.
EUR/USD stays firm near 1.0750 amid US Dollar pullback
EUR/USD holds higher ground near 1.0750 in the European session on Thursday. The pair finds support from a broad US Dollar retreat, as traders unwind their Trunp win-inspired USD longs ahead of all-important Fed policy announcements.
Gold price faces challenges due to decline in safe-haven flows, awaits Fed rate decision
Gold price (XAU/USD) faced challenges as the dollar-denominated precious metals struggled due to a stronger US Dollar (USD) following the victory of former President Donald Trump in the US election.
BoE set for a second interest rate cut this year on Thursday
Market consensus points to further easing by the Bank of England's (BoE) upcoming interest rate decision on Thursday. The BoE has held rates steady at 5.00% in the previous gathering, but shifting investor sentiment now suggests a possible 25-basis-point cut this week.
Outlook for the markets under Trump 2.0
On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.