AUD/USD hovers near three-week lows after RBA minutes

  • AUD/USD continues to trade in the red as RBA's minutes sound dovish. 
  • RBA members discussed additional easing to support jobs. 
  • The AU-US yield differential turns negative in a USD-positive manner. 

AUD/USD remains on the offer at three-week lows, with the minutes of the Reserve Bank of Australia's October meeting supporting the case for additional easing in November.

Released at 00:30 GMT, the minutes said:

  • The Board discussed the case for additional monetary easing to support jobs and the overall economy. 
  • Members discussed the options of reducing the targets for the cash rate and the 3-year yield towards zero, without going negative, and buying government bonds further along the yield curve. 
  • With the economy opening up, members considered it reasonable to expect that further monetary easing would gain more traction than had been the case earlier.
  • A further easing would help to reduce financial stability risks by strengthening the economy and private sector balance sheets, thereby lowering the number of non-performing loans. 
  • The Board agreed to put more emphasis on actual, not forecast, inflation in its decision-making. 
  • Members indicated that they would also like to see more than just progress towards full employment before considering an increase in the cash rate.

According to most analysts, the additional stimulus is likely to be announced during the Nov. 3 policy meeting. The central bank is expected to cut the interest rate to a new record low of 0.1% from the current 0.25% and possibly boost bond purchases in the five to 10-year window. 

RBA Assistant Governor Kent noted early today that rates could move into negative territory in the case of further RBA easing. The Aussie-US 10-year yield differential has dropped into the negative territory for the first time since March. 

As such, the path of least resistance for the Aussie dollar appears to be on the downside. AUD/USD is currently trading at 0.7056, having hit a low of 0.7046 a few minutes ago. That was the lowest level since Sept. 28. The S&P 500 futures are currently reporting 0.5% gains. As such, demand for the safe-haven US dollar may weaken, helping AUD/USD avoid deeper losses for some time.

Technical levels


Today last price 0.7058
Today Daily Change -0.0006
Today Daily Change % -0.08%
Today daily open 0.7064
Daily SMA20 0.7132
Daily SMA50 0.7203
Daily SMA100 0.71
Daily SMA200 0.679
Previous Daily High 0.7116
Previous Daily Low 0.7058
Previous Weekly High 0.7242
Previous Weekly Low 0.7055
Previous Monthly High 0.7414
Previous Monthly Low 0.7004
Daily Fibonacci 38.2% 0.708
Daily Fibonacci 61.8% 0.7094
Daily Pivot Point S1 0.7043
Daily Pivot Point S2 0.7021
Daily Pivot Point S3 0.6984
Daily Pivot Point R1 0.7101
Daily Pivot Point R2 0.7138
Daily Pivot Point R3 0.716



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hits fresh two-month highs amid dollar weakness

EUR/USD has hit new two-month highs above 1.1940 as the dollar resumes its decline. Optimism about the US transition and covid vaccines is weighing on the safe-haven dollar. 


GBP/USD falls toward 1.33 amid Brexit acrimony

GBP/USD is falling toward 1.33 as both the EU and the UK are busy blaming each other for an impasse in Brexit talks. The thorny issues remain fisheries, governance and setting a level playing field.


XAU/USD attempting to bounce up from $1,775 low

Gold futures accelerated heir downtrend from last week highs near $1,900, breaking below the 200-day SMA, at $1,800 area, to hit its lowest prices in nearly five months, at $1,775.

Gold news

Dollar offered ahead of the weekend

Equities are finishing the week on a firm tone, while the US dollar remains heavy. In the Asia Pacific, only Australia and India did not end the week on a firm note.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info