AUD/USD edges lower below 0.6620 ahead of the RBA rate decision
- AUD/USD edges lower on the renewed demand around 0.6618 on Tuesday.
- FOMC Chair Powell said that the Fed would not hesitate to raise the interest rates again if necessary
- The RBA is expected to keep its cash rate at 4.35.
- RBA interest rate decision and the Services PMI will be the closely watched events on Tuesday.
The AUD/USD pair post a modest gain during the early Asian session on Tuesday. Investors await the Reserve Bank of Australia (RBA) policy meeting on Tuesday and no change in rates is expected. AUD/USD pares gains above the 0.6600 level as the USD edges higher against its rivals. The pair currently trade near 0.6618, up 0.01% on the day.
Last week, FOMC Chair Powell said that the Fed would not hesitate to raise the interest rates again if necessary. The October JOLTS report will be due on Tuesday and is likely to decrease 200k jobs. The market anticipates that the FOMC will begin its cutting cycle in Q3 2024. On Monday, the US factory orders fell 3.6% MoM in October from a 2.3% rise in the previous reading.
On the other hand, investors will keep an eye on the RBA meeting. The RBA is expected to keep its cash rate at 4.35% after raising it by 25 basis points (bps) last month. China's Caixin Service PMI for November is due and is expected to recover from 50.4 to 50.8 expected. The stronger-than-expected data might boost the China-proxy Australian Dollar (AUD).
Market players will monitor the RBA interest rate decision and the US Services PMI is due. Traders will take cues from the data and find the trading opportunity around the AUD/USD pair.
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.
