AUD/USD consolidates its gains above the mid-0.6500s ahead of RBA Minutes


  • AUD/USD oscillates in a narrow range, nearing fresh monthly highs in early Tuesday.
  • Market players have priced in a 100 basis point (bps) rate cut in the first half of 2024.
  • More optimistic about additional Chinese stimulus measures and an end of the Fed's rate hike cycle lift the AUD.
  • The RBA and FOMC Meeting Minutes will be in the spotlight on Tuesday.

The AUD/USD pair consolidates its recent gains to nearly fresh monthly highs during the early Asian session on Tuesday. The risk appetite and lower US Treasury yields exert some selling pressure on the US Dollar (USD), which lends support to the AUD/USD. Meanwhile, the US Dollar Index (DXY) dropped to 103.45, the lowest since late August. At the time of writing, AUD/USD is holding lower ground near 0.6557, losing 0.06% on the day.

US Treasury yields edge lower and US equities were marginally higher at the start of US Thanksgiving. With little economic data forthcoming, the attention will be on the minutes of the FOMC meeting, which are expected to be released late Tuesday. The report may include signals regarding future policy rate direction and inflation improvement. Market players raised their bets that the Federal Reserve (Fed) is done raising the interest rate and have priced in a 100 basis point (bps) rate cut in the first half of 2024.

On the other hand, commodity prices rose as investors became more optimistic about additional Chinese stimulus measures and the end of the Fed's rate hike cycle. This, in turn, boosts the China-proxy Australian Dollar (AUD). The Reserve Bank of Australia (RBA) Governor Michele Bullock will deliver a speech on Tuesday and RBA will also publish the minutes of its recent meetings later.

Markets anticipate a rate cut in 2024, but the RBA is still attempting to convince markets that rate hikes are still on the table and it is not talking about cutting rates. If the statement delivers a surprisingly hawkish tone, this could lift the AUD and act as a tailwind for the AUD/USD pair.

Looking ahead, market players will closely watch the RBA Meeting Minutes and RBA Governor Michele Bullock’s speech. The US Existing Home Sales and the Chicago Fed National Activity Index will be released on Tuesday ahead of the FOMC Meeting Minutes from its latest meeting. Traders will take cues from these figures and find trading opportunity around the AUD/USD pair.

 

AUD/USD

Overview
Today last price 0.6556
Today Daily Change 0.0042
Today Daily Change % 0.64
Today daily open 0.6514
 
Trends
Daily SMA20 0.6407
Daily SMA50 0.6396
Daily SMA100 0.6488
Daily SMA200 0.6594
 
Levels
Previous Daily High 0.6515
Previous Daily Low 0.6452
Previous Weekly High 0.6542
Previous Weekly Low 0.6352
Previous Monthly High 0.6445
Previous Monthly Low 0.627
Daily Fibonacci 38.2% 0.6491
Daily Fibonacci 61.8% 0.6476
Daily Pivot Point S1 0.6473
Daily Pivot Point S2 0.6431
Daily Pivot Point S3 0.641
Daily Pivot Point R1 0.6535
Daily Pivot Point R2 0.6556
Daily Pivot Point R3 0.6598

 

 

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 below 1.0700 after upbeat US PMI data

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays on the back foot and trades in negative territory below 1.0700 as the US Dollar benefits from upbeat data in the American session. S&P Global reported that the economic activity in the US private sector continued to expand at a robust pace in June.

EUR/USD News

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD remains under bearish pressure and trades at its lowest level since mid-May below 1.2650. The stronger-than-forecast Manufacturing and Services PMI data from the US helps the USD hold its ground and causes the pair to stretch lower.

GBP/USD News

Gold drops below $2,340 as US yields rebound

Gold drops below $2,340 as US yields rebound

Gold loses its traction and trades deep in the red below $2,340 in the second half of the day on Friday. The benchmark 10-year US Treasury bond yield pushes higher following the upbeat PMI data from the US, weighing on XAU/USD.

Gold News

Bitcoin retraces to crucial support

Bitcoin retraces to crucial support

Bitcoin price encounters resistance at weekly highs before retracing to seek support at a crucial level, while Ethereum and Ripple align closely with Bitcoin's movements, gearing up to surpass resistance barriers and embark on upward rallies.

Read more

Week ahead – US PCE inflation the highlight of a relatively light agenda

Week ahead – US PCE inflation the highlight of a relatively light agenda

Core PCE inflation to test bets of two Fed rate cuts in 2024. Yen awaits BoJ Summary of Opinions, Tokyo CPI. Canadian CPI data also enters the spotlight.

Read more

Forex MAJORS

Cryptocurrencies

Signatures