AUD/USD consolidates in a tight range below 0.6450 ahead of the RBA Meeting Minutes


  • AUD/USD trades sideways around 0.6437 amid the cautious mood.
  • Markets expect the Reserve Bank of Australia (RBA) to keep its cash rate at 4.10% for the third consecutive month.
  • Federal Reserve (Fed) is not expected to surprise the markets, with the probability of keeping rates unchanged at 99%.
  • Market players await the RBA Meeting Minutes ahead of the Fed rate decision.

The AUD/USD pair consolidates in a tight range below the mid-0.6400s during the early Asian session on Tuesday. Markets turn cautious ahead of the Reserve Bank of Australia (RBA) interest rate decision later in the day. The pair currently trades near 0.6437, gaining 0.01% on the day.

Michele Bullock began her seven-year term as RBA governor after taking over from Philip Lowe on Monday. She stated that she will inherit an economy with moderating inflation, robust employment, and continued development. The RBA Minutes are scheduled for Tuesday, and markets expect the Australian central bank to keep its cash rate at 4.10% for the third month in a row. However, the possibility of a rate hike in November cannot be ruled out, if inflation remains sticky. Furthermore, investors will take cues from the board's views on the downside economic risks as well as the spillover effects of China's economic downturn on Australia.

On the other hand, market participants await the US Federal Reserve's (Fed) policy announcement on Wednesday, while the central bank is widely expected to halt interest rates. According to the CME Fedwatch tools, the Fed is not expected to surprise the markets, with the probability of keeping rates unchanged at 99%. Nonetheless, the press conference by Fed Chairman Jerome Powell could offer hints about future interest rates path and this event will be closely watched by traders.

Looking ahead, the RBA Meeting Minutes will be the highlight on Tuesday and might trigger the volatility in the major pair. Later in the day, the US Housing Starts and Building Permits will be due. The attention will shift to the Fed policy meeting on Wednesday. Traders will take cues from the statement and find trading opportunities around the AUD/USD pair.

 

AUD/USD

Overview
Today last price 0.6438
Today Daily Change 0.0008
Today Daily Change % 0.12
Today daily open 0.643
 
Trends
Daily SMA20 0.6429
Daily SMA50 0.6557
Daily SMA100 0.6617
Daily SMA200 0.6705
 
Levels
Previous Daily High 0.6474
Previous Daily Low 0.6425
Previous Weekly High 0.6474
Previous Weekly Low 0.6378
Previous Monthly High 0.6724
Previous Monthly Low 0.6364
Daily Fibonacci 38.2% 0.6443
Daily Fibonacci 61.8% 0.6455
Daily Pivot Point S1 0.6412
Daily Pivot Point S2 0.6394
Daily Pivot Point S3 0.6363
Daily Pivot Point R1 0.6461
Daily Pivot Point R2 0.6491
Daily Pivot Point R3 0.6509

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD stays near 1.0400 in thin holiday trading

EUR/USD stays near 1.0400 in thin holiday trading

EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.

EUR/USD News
GBP/USD struggles to find direction, holds steady near 1.2550

GBP/USD struggles to find direction, holds steady near 1.2550

GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.

GBP/USD News
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook

Gold holds above $2,600, bulls non-committed on hawkish Fed outlook

Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.

Gold News
IRS says crypto staking should be taxed in response to lawsuit

IRS says crypto staking should be taxed in response to lawsuit

In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.

Read more
2025 outlook: What is next for developed economies and currencies?

2025 outlook: What is next for developed economies and currencies?

As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.

Read more
Best Forex Brokers with Low Spreads

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.

Read More

Forex MAJORS

Cryptocurrencies

Signatures