- AUD/USD turned south after advancing to 0.7150 area.
- RBA left its policy rate unchanged at 0.25% as expected.
- Eyes on Factory Orders and ISM-NY Business Conditions Index data from the US.
The AUD/USD pair closed the second straight day in the negative territory on Monday but staged a rebound toward 0.7150 during the Asian session. Nevertheless, the pair failed to preserve its momentum and erased its gains to turn flat on the day near 0.7120.
RBA offers nothing new with respect to policy outlook
Following its July monetary policy meeting, the Reserve Bank of Australia (RBA) decided to keep its policy rate unchanged at 0.25% as expected. In its policy statement, the RBA reiterated that it will maintain its accommodative approach as long as it's required. "The Australian economy is going through a very difficult period; experiencing its biggest contraction since the 1930s," the RBA added. The fact that the bank didn't voice any concerns regarding the AUD strength helped AUD/USD push higher.
On the other hand, the renewed USD strength is weighing on AUD/USD during the early trading hours of the American session. Although the 10-year US Treasury bond yield is staying deep in the red on Tuesday, the US Dollar Index (DXY) continues to edge higher toward 94.00. Ahead of the Factory Orders and the ISM-NY's Business Conditions Index data, the DXY is up 0.33% on the day at 93.82.
On Wednesday, AiG Performance of Construction Index, Commonwealth Bank Services PMI and Home Loans data from Australia will be looked upon for fresh impetus.
Technical levels to watch for
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
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.