AUD/USD drops below 0.6300 following RBA’s Bullock speech

AUD/USD extends its downside following RBA Governor Bullock's speech.
Reserve Bank of Australia (RBA) Governor said CPI was higher than expected, but was about where it would come.
The September’s US New Home Sales rose to 759,000 MoM, above the market consensus of 680,000.
Market players await the first US Q3 Gross Domestic Product estimate, Initial Jobless Claims, and Durable Goods Orders.

Lallalit Srijandorn FXStreet

The AUD/USD pair attracts some sellers during the early Asian trading hours on Thursday. The pair breaks below the 0.6300 mark and currently trades around 0.6290, losing 0.28% for the day. The risk-off sentiment and a firmer US Dollar (USD) exert pressure on the pair.

Early Thursday, Reserve Bank of Australia (RBA) Governor Michele Bullock stated that CPI was a little higher than expected, but it was about where we thought it would come. Bullock added that the central bank aims to slow the economy without tipping it into recession.

The Australian Consumer Price Index (CPI) arrives at 1.2% QoQ in the third quarter of 2023 versus the 0.8% increase seen in the second quarter. The market consensus was for a rise of 1.1% in the reported period. On an annual basis, CPI inflation rose to 5.4% in Q3 2023, against the expected 5.3% increase and the previous print of 6.0%.

On the US Dollar front, September’s New Home Sales in the US increased to 759,000 MoM, above the market consensus of 680,000. The upside of the Greenback is bolstered by the higher US Treasury yields and a risk-off mood. Meanwhile, the US Treasury bond yields edge higher, with the 10-Y US Treasury yield surging to 4.96%.

Additionally, geopolitical risks will continue to boost safe-haven flows. Early Thursday, Prime Minister Benjamin Netanyahu said Israel is preparing for a ground assault in Gaza and the timing of the invasion will be reached by consensus.

Moving on, the Australian Export and Imports Price Index for the third quarter (Q3) is scheduled to be released in the Asian session on Thursday. Market participants will closely monitor the first Q3 Gross Domestic Product estimate on Thursday, which is expected to show a 4.2% expansion. Also, Initial Jobless Claims and Durable Goods Orders will be released.

AUD/USD

Overview
Today last price	0.6291
Today Daily Change	-0.0064
Today Daily Change %	-1.01
Today daily open	0.6355

Trends
Daily SMA20	0.636
Daily SMA50	0.6401
Daily SMA100	0.6547
Daily SMA200	0.6648

Levels
Previous Daily High	0.6379
Previous Daily Low	0.6333
Previous Weekly High	0.6393
Previous Weekly Low	0.6296
Previous Monthly High	0.6522
Previous Monthly Low	0.6332
Daily Fibonacci 38.2%	0.6361
Daily Fibonacci 61.8%	0.635
Daily Pivot Point S1	0.6332
Daily Pivot Point S2	0.6309
Daily Pivot Point S3	0.6286
Daily Pivot Point R1	0.6378
Daily Pivot Point R2	0.6402
Daily Pivot Point R3	0.6425

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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