AUD/USD climbs despite solid US data on hawkish RBA minutes

AUD/USD advances, trading around 0.6371 after bouncing from daily lows.
Richmond Fed President Thomas Barkin's comments on the restrictive policy stance, remains undecided for the upcoming FOMC meeting.
Hawkish RBA meeting minutes hint at a potential rate hike in November, with a focus on Q3 inflation data.

Christian Borjon Valencia FXStreet

The Aussie Dollar (AUD) edges higher vs. the US Dollar (USD) in the mid-North American session, rising more than 0.50% after hitting a daily low of 0.6332. Even though upbeat economic data from the United States (US) warranted lower exchange rates, tilted hawkish Reserve Bank of Australia’s (RBA) minutes bolstered the AUD. At the time of writing, the AUD/USD is trading at 0.6371.

AUD/USD gains momentum despite strong US Retail Sales, eyes on Chinese GDP data

The US economic docket recently featured the Richmond Fed President Thomas Barkin, who said that policy is already restrictive and he’s undecided regarding the upcoming FOMC monetary policy meeting in November. He added the US central bank can’t rely in longer-term higher bond yields to tighten monetary conditions.

Earlier, the US Bureau of Economic Analysis (BEA) revealed that Retail Sales in September crushed estimates of 0.3% MoM as figures jumped 0.7%, as consumers remain resilient. Later, the Federal Reserve announced that Industrial Production picked up despite having interest rates at higher levels.

During the Asian session, the latest Reserve Bank of Australia (RBA) meeting minutes portray the bank as hawkish, keeping the door open for a November hike as RBA officials eye Q3’s inflation report. Aside from this, Chiina’s data would reveal if the second largest economy continues to lose traction, as most analysts expect a slowdown in growth, with estimates circa 4.4% YoY, below the Chinese government projections of 5%.

A weak number on Chinese GDP could weigh on market sentiment, therefore dragging Aussie Dollar (AUD) prices lower. Otherwise, upbeat figures could trigger another AUD/USD pair leg-up.

AUD/USD Price Analysis: Technical outlook

After forming a bullish-piercing pattern, the AUD/USD extends its gains past Monday’s daily high of 0.6345, though shy of reclaiming 0.6400. A breach of the latter, the pair would test the 50-day moving average (DMA) at 0.6416 before threatening to crack the latest cycle high of 0.6445. On the other hand, the pair would resume its downtrend, towards 0.6300, before the AUD/USD challenges the year-to-date (YTD) low of 0.6285.

AUD/USD

Overview
Today last price	0.6366
Today Daily Change	0.0024
Today Daily Change %	0.38
Today daily open	0.6342

Trends
Daily SMA20	0.6387
Daily SMA50	0.6421
Daily SMA100	0.6561
Daily SMA200	0.6666

Levels
Previous Daily High	0.6345
Previous Daily Low	0.6296
Previous Weekly High	0.6445
Previous Weekly Low	0.6286
Previous Monthly High	0.6522
Previous Monthly Low	0.6332
Daily Fibonacci 38.2%	0.6326
Daily Fibonacci 61.8%	0.6315
Daily Pivot Point S1	0.631
Daily Pivot Point S2	0.6279
Daily Pivot Point S3	0.6261
Daily Pivot Point R1	0.636
Daily Pivot Point R2	0.6377
Daily Pivot Point R3	0.6409

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

AUD/USD remains offered; supported by 0.7100

AUD/USD adds to Monday’s retracement, although it manages well to keep the trade above the 0.7100 yardstick ahead of the opening bell in Asia. Once again, the softer tone in spot follows decent gains in the Greenback amid rising bets for a Fed rate hike on Wednesday.

USD/JPY extends gains toward 155.00 amid USD resurgence

USD/JPY keeps pushing higher toward 155.00 early Tuesday, looking for more upside, as traders await the FOMC and BoJ meetings this week. Meanwhile, Fed rate-hike bets and oil-driven inflation risks keep US bond yields near multi-year highs, supporting the US Dollar and the pair. That said, a more hawkish repricing of the BoJ normalization path might continue to underpin the Japanese Yen and could limit USD/JPY's upside. .

Gold set to fall toward $4,000 as Warsh faces a Fed rate-hike dilemma

As the Federal Reserve monetary policy announcement approaches and the Middle East war intensifies, the US Dollar resumes its advance. Gold price posted a tepid attempt to recover its shine in early August, but with renewed USD demand, the bright metal faltered miserably and is now closer to the $4,000 mark than the encouraging $4,700 peak from a month ago.

Bitcoin pulls back as valuation ceilings hold while XAU weakness persists

Bitcoin (BTC) corrects alongside the broader cryptocurrency market on Tuesday as selling persists ahead of the United States (US) Federal Reserve (Fed) monetary policy decision. Market participants expect the central bank to raise interest rates to 3.75%-4.00% on Wednesday, potentially weighing on risk assets.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.