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.

Lallalit Srijandorn FXStreet

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.

AUD/USD

Overview
Today last price	0.662
Today Daily Change	-0.0054
Today Daily Change %	-0.81
Today daily open	0.6674

Trends
Daily SMA20	0.6519
Daily SMA50	0.6428
Daily SMA100	0.6476
Daily SMA200	0.658

Levels
Previous Daily High	0.6676
Previous Daily Low	0.66
Previous Weekly High	0.6677
Previous Weekly Low	0.6567
Previous Monthly High	0.6677
Previous Monthly Low	0.6318
Daily Fibonacci 38.2%	0.6646
Daily Fibonacci 61.8%	0.6629
Daily Pivot Point S1	0.6624
Daily Pivot Point S2	0.6574
Daily Pivot Point S3	0.6548
Daily Pivot Point R1	0.67
Daily Pivot Point R2	0.6726
Daily Pivot Point R3	0.6776

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.

AUD/USD picks up bids above 0.7100 after RBA-speak

AUD/USD picks up bids above 0.7100 in the Asian session on Tuesday, following hawkish comments from RBA Assistant Governor Sarah Hunter and Governor Michele Bullock. However, escalating tensions in the Middle East and the Fed's hawkish outlook remain supportive of the bullish US Dollar undertone, which could limit the pair. The crucial Trump-Xi summit is later this week and remains in focus.

USD/JPY holds small gains near 157.50 as JPY intervention risks loom

USD/JPY posts modest gains while trading near 157.50 in the Asian session on Tuesday as intervention fears help limit losses for the Japanese Yen. However, the BoJ's dovish rate hike to a 31-year high keeps JPY bulls on the back foot. Meanwhile, the US Dollar retains a bullish undertone amid the Fed's hawkish outlook and escalating Middle East tensions, providing tailwinds for the pair.

Gold makes a U-turn; focus shifts to $4,400

Gold regains balance and now trades with decent gains, approaching the key $4,400 mark per troy ounce on Tuesday. The yellow metal’s advance comes despite the resumption of the buying interest in the US Dollar, mixed US Treasury yields and geopolitical uncertainty.

Trump meets Xi: Why markets are watching this summit so closely

US President Donald Trump and Chinese President Xi Jinping are set to meet in Washington on Thursday for a summit closely watched by markets. The meeting could determine whether the world's two largest economies extend their truce or enter a new period of uncertainty.

Energy and risk markets remain in the driver’s seat

US stock markets rallied up 2.26% (Nasdaq) yesterday with AI/tech names leading the advance. The Nasdaq even tested the all-time high reached early June. The likes of the S&P 500 and EuroStoxx50 recovered up to 1.5%. Positive risk vibes and lower energy prices supported consolidation on bond markets following the past month’s heavy losses. European yield curves bull steepened.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.