AUD/USD faces delicate resistance near 0.6500 as focus shifts to RBA policy


  • AUD/USD finds nominal selling pressure near 0.6500 while more upside remains favored.
  • Soft US core PCE inflation data dragged the 10-year US Treasury yields to 4.5%.
  • The RBA is expected to keep interest rates unchanged but the interest rate peak is seen at 4.35% by the year-end.

The AUD/USD pair rallied to near the psychological resistance of 0.6500 but struggled to extend further as the US Dollar Index (DXY) discovered buying interest after correcting to near 105.66.

The S&P500 opens on a bullish note as the market mood turns cheerful. The appeal for the risk-sensitive assets improved as investors started digesting fears of a global slowdown due to higher interest rates by central bankers. The 10-year US Treasury yields dropped sharply to 4.51% after soft United States core Personal Consumption Expenditure (PCE) price index data for August.

Monthly core PCE expanded at a nominal pace of 0.1% in August against expectations and the former release of 0.2%. The annualized PCE has softened to 3.9% as expected from the former release of 4.3%. This may buy some more time for the Federal Reserve (Fed) to assess the impact of the interest rate hikes till made.

Going forward, investors will focus on the US Manufacturing PMI report for September to be released by the Institute of Supply Management (ISM) agency. As per the expectations, the Manufacturing PMI is expected to contract consecutively for the 11th month. A figure below the 50.0 threshold is considered as contraction in economic activities. The economic data is seen improving to 47.8 vs. 47.6 reading from August.

On the Australian Dollar front, investors await the interest rate decision by the Reserve Bank of Australia (RBA), which will be announced on Tuesday. The RBA is expected to keep interest rates unchanged at 4.10% but economists see the interest rate peak at 4.35% by the year-end, according to a Reuters poll.

AUD/USD

Overview
Today last price 0.6464
Today Daily Change 0.0037
Today Daily Change % 0.58
Today daily open 0.6427
 
Trends
Daily SMA20 0.6419
Daily SMA50 0.6492
Daily SMA100 0.6591
Daily SMA200 0.6691
 
Levels
Previous Daily High 0.6432
Previous Daily Low 0.6345
Previous Weekly High 0.6511
Previous Weekly Low 0.6385
Previous Monthly High 0.6724
Previous Monthly Low 0.6364
Daily Fibonacci 38.2% 0.6399
Daily Fibonacci 61.8% 0.6378
Daily Pivot Point S1 0.637
Daily Pivot Point S2 0.6314
Daily Pivot Point S3 0.6283
Daily Pivot Point R1 0.6458
Daily Pivot Point R2 0.6489
Daily Pivot Point R3 0.6546

 

 

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

AUD/USD holds higher ground above 0.6650 on China optimism

AUD/USD holds higher ground above 0.6650 on China optimism

AUD/USD is flirting with session highs above 0.6650 even after Australian Retail Sales data missed estimates with 0.1% MoM in April. The pair draws support from broad US Dollar softness and China's property market measures. Focus shifts to Fedspeak. 

AUD/USD News

USD/JPY falls from 157.00 as US Dollar meets fresh supply

USD/JPY falls from 157.00 as US Dollar meets fresh supply

USD/JPY is reversing from near 157.00 in Asian trading on Tuesday, undermined by a renewed US Dollar selling wave, as risk sentiment receives a fresh boost on China optimism. Investors await Fedspeak and key data to determine the pace of rate cuts from central banks moving forward.

USD/JPY News

Gold price trades with mild gains, investors await US key data

Gold price trades with mild gains, investors await US key data

Gold price edges higher on Tuesday after bouncing off two-week lows of $2,325. The uptick of yellow metal is bolstered by the softer US Dollar and safe-haven flows amid the ongoing geopolitical tensions in the Middle East. 

Gold News

Ethereum investors confident of rally as ETH developers schedule Pectra upgrade for Q1 2025

Ethereum investors confident of rally as ETH developers schedule Pectra upgrade for Q1 2025

Ethereum gained nearly 3% on Monday as investors exhibited high bullish sentiment. Michael Saylor also commented on the recent spot ETH ETF approval by the Securities & Exchange Commission.

Read more

Fed policymakers on the radar, as US PCE inflation looms

Fed policymakers on the radar, as US PCE inflation looms

Federal Reserve policymakers are set to make their scheduled appearances on Tuesday, as full markets return, anticipating the release of the high-impact US PCE inflation due later this week.

Read more

Forex MAJORS

Cryptocurrencies

Signatures