- AUD/USD takes the bids near one week high, also the highest since mid-September.
- RBA minutes reiterate no to negative rates, showing readiness for further stimulus.
- Risk remains positive amid Brexit, vaccine hopes, light calendar.
- RBA’s Debelle, risk headlines will be the key to watch ahead of the US retail Sales.
AUD/USD rises to the fresh one-week high of 0.7330, currently up 0.10% intraday around 0.7327, amid Tuesday’s Asian session. The pair recently benefited from the RBA’s bullish bias, as conveyed via minutes of the latest monetary policy. Also favoring the pair buyers could be the coronavirus (COVID-19) vaccine hopes and positive chatters concerning Brexit.
RBA minutes defy negative rates…
Despite offering a new tool for cheap credit and adding to the Quantitative Easing (QE), RBA policymakers stay away from the negative interest rates. The latest monetary policy meeting minutes suggest the policymaker’s readiness to offer further easy money while turning down any more immediate rate cuts and a clear ‘NO’ to the negative rates.
Read: RBA Minutes: Ready to provide yet more policy stimulus
Not only the RBA minutes but global market optimism concerning the COVID-19 vaccine and Brexit also favor the bulls. After Moderna’s vaccine trial update, Johnson & Johnson also mentioned beginning the late-stage testing of its two-dose vaccine.
Elsewhere, The Sun came out with the news suggesting that the UK’s Chief Brexit Negotiator David Frost indicates the Brexit trade deal between the European Union (EU) and Britain during the early next week.
Against this backdrop, S&P 500 Futures drop 0.10% but stocks in Asia-Pacific remain mostly positive by press time.
Looking forward, updates concerning the covid vaccine and the virus news can offer fresh direction to the AUD/USD traders ahead of the speech from RBA Assistant Governor (Financial Markets) Guy Debelle. Following that, the US Retail Sales for October, expected 0.5% MoM versus 1.9% prior, will be important to follow.
Technical analysis
AUD/USD bulls target the 0.7340/45 resistance area, comprising the tops marked since the mid-September, for now, a break of which will highlight the August 31 high near 0.7415. Alternatively, the 0.7300 round-figure and the previous month’s peak surrounding 0.7245/40 can offer short-term support during the pair’s corrective pullback.
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
EUR/USD clings to modest gains above 1.0650 ahead of US data
EUR/USD trades modestly higher on the day above 1.0650 in the early American session on Tuesday. The upbeat PMI reports from the Eurozone and Germany support the Euro as market focus shift to US PMI data.
GBP/USD extends rebound, tests 1.2400
GBP/USD preserves its recovery momentum and trades near 1.2400 in the second half of the day on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength against its rivals.
Gold flirts with $2,300 amid receding safe-haven demand
Gold (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark in the European session. Eyes on US PMI data.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.