- AUD/USD falls sharply after closing in the positive territory on Monday.
- RBA left its policy settings unchanged as expected.
- US Dollar Index climbs higher toward 91.50 on Tuesday.
The broad-based selling pressure surrounding the greenback and the risk-positive market environment helped the AUD/USD pair close in the positive territory on Monday. However, the pair lost its traction on Tuesday as the USD regained its strength. As of writing, AUD/USD was down 0.65% on a daily basis at 0.7710.
AUD ignores RBA's policy announcements
The Reserve Bank of Australia (RBA) announced on Tuesday that it left its policy rate unchanged at a record low of 0.1% in May and maintained the parameters of the government bond purchase program. Although the RBA revised its 2021 growth expectation higher to 4.75% and 3.5% in 2021 and 2022, respectively, it failed to help the AUD find demand.
On the other hand, the US Dollar Index, which lost 0.35% on Monday, gained traction and touched its highest level since April 22 at 91.39.
Later in the session, the ISM-NY Business Conditions Index and the IBD/TIPP Economic Optimism Index will be featured in the US economic docket. Meanwhile, the S&P 500 Futures are down 0.1% on the day, suggesting that the greenback could preserve its strength with investors staying cautious in the second half of the day.
On Wednesday, the Commonwealth Bank Services PMI and Building Permits data from Australia will be looked upon for fresh impetus.
Technical levels to watch for
|Today last price||0.771|
|Today Daily Change||-0.0051|
|Today Daily Change %||-0.66|
|Today daily open||0.7761|
|Previous Daily High||0.7768|
|Previous Daily Low||0.7706|
|Previous Weekly High||0.7819|
|Previous Weekly Low||0.7696|
|Previous Monthly High||0.7819|
|Previous Monthly Low||0.7531|
|Daily Fibonacci 38.2%||0.7744|
|Daily Fibonacci 61.8%||0.7729|
|Daily Pivot Point S1||0.7722|
|Daily Pivot Point S2||0.7682|
|Daily Pivot Point S3||0.7659|
|Daily Pivot Point R1||0.7784|
|Daily Pivot Point R2||0.7807|
|Daily Pivot Point R3||0.7847|
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.