The Australian dollar continues to drift as we start the new trading week. In Monday’s European session, AUD/USD is trading at 0.6438, up 0.11%.

The Reserve Bank of Australia releases its minutes of this month’s meeting. The RBA extended a pause in rates for a third month, holding the official cash rate at 4.10%. This was ex-Governor Philip Lowe’s final meeting. Lowe noted that “passed its peak” but was “still too high and will remain so for some time yet”, as he kept the door open to further rate hikes. The markets are more dovish and are looking ahead to the RBA trimming rates sometime in 2024. Investors will be looking for clues in the minutes with regard to future rate moves.

Michelle Bullock takes over today as the new Governor of the RBA. Bullock is not expected to make any major policy shifts and has stated that the upcoming rate decisions will be data-dependent. The new governor will have her hands full with implementing major changes at the bank, after a government committee urged an overhaul at the central bank which is intended to streamline the Bank’s activities and create greater transparency.

The US ended last week on a mixed note. The Empire State Manufacturing Index surprised to the upside, jumping to 1.9 in September from -19 in August, above the market  consensus of -10. The UoM consumer sentiment index slowed to 67.7 in September, down from 69.5 in August and shy of the market consensus of 69.1 points. Inflation Expectations fell to 3.1% in August, down from 3.5% in July and the lowest level since March 2021. This is another sign that inflation is weakening and  supports a pause at the Federal Reserve meeting on Wednesday. The markets have priced in a pause at 99%, according to the CME FedWatch tool, up from 92% one week ago.

AUD/USD technical

  • AUD/USD tested support at 0.6428 earlier. The next support line is 0.6381.

  • 0.6477 and 0.6524 are the next resistance lines.

AUDUSD

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD: Gains appear capped above 0.6700

AUD/USD: Gains appear capped above 0.6700

AUD/USD came under heavy downside pressure on Wednesday, retreating for the third session in a row in response to extra gains in the US Dollar, while renewed weakness in the commodity galaxy also collaborated with the steep decline.

AUD/USD News

EUR/USD opens the door to a test of 1.0800

EUR/USD opens the door to a test of 1.0800

The continuation of the buying pressure in the Greenback maintained the price action around EUR/USD depressed on Wednesday, motivating the pair to recede to multi-day lows in the 1.0820–1.0855 band.

EUR/USD News

Gold plummets amid Harmony Gold news

Gold plummets amid Harmony Gold news

Gold price turned south and extended its slide after breaking below the key $2,400 level. The 10-year US Treasury bond yield holds steady above 4.4% and the US Dollar benefits from the negative shift seen in risk sentiment ahead of FOMC Minutes, not allowing XAU/USD to rebound.

Gold News

White House and SEC Chair condemns crypto bill that seeks to dodge the regulator’s oversight

White House and SEC Chair condemns crypto bill that seeks to dodge the regulator’s oversight

US Securities & Exchange Commission (SEC) Chair Gary Gensler expressed concerns about the potential impact of the FIT21 bill on investor protection in a statement on Wednesday.

Read more

UK election confirmed for July, what it means for markets

UK election confirmed for July, what it means for markets

The UK will head to the polls on July 4th. This election has been expected for some time, so it is no wonder that UK asset prices have been remarkably stable on the back of this news. GBP/USD has given back some earlier gains, but it is still higher on the day.

Read more

Majors

Cryptocurrencies

Signatures