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AUD/USD maintains position near 0.6570, focus on the RBA decision

  • AUD/USD holds ground ahead of RBA’s policy decision on Monday.
  • Chinese Retail Sales (YoY) rose by 5.5% in February, compared to the expected 5.2% and 7.4% prior.
  • The correction in US Treasury yields contributes to downward pressure on the US Dollar.

AUD/USD snaps its two-day losing streak, advancing to near 0.6570 during the European session on Monday. The pair found upward support as the US Dollar (USD) retreated amid lower US Treasury yields. However, caution prevails among market participants ahead of the Reserve Bank of Australia's (RBA) policy decision scheduled for Tuesday.

The US Dollar Index (DXY) is hovering around 103.40, with the 2-year and 10-year US Treasury yields at 4.71% and 4.29%, respectively, by the press time. On Friday, increases in US yields, were driven by a hawkish sentiment surrounding the Federal Reserve. The Fed is anticipated to uphold its elevated interest rates at Wednesday’s meeting in response to recent inflationary pressures.

The Australian Dollar (AUD) might have received upward support as the S&P/ASX 200 Index recovered from its losses, although the Australian equity market faced challenges during Asian hours due to softer commodity prices.

According to Bloomberg, Westpac anticipates the Reserve Bank of Australia to maintain its cash rate at 4.35% at Tuesday's meeting. RBA Governor Michele Bullock recently highlighted that inflation in Australia is primarily "homegrown" and "demand-driven," attributed to the strength of the labor market and increasing wage inflation. The RBA does not foresee this phenomenon occurring until 2026.

Additionally, investors also await interest rate decisions from both the People's Bank of China (PBoC). Chinese Retail Sales (YoY) increased by 5.5% in February, surpassing expectations of 5.2% and the previous reading of 7.4%. Additionally, Chinese Industrial Production (YoY) rose by 7.0%, compared to the market expectation of a 5.0% figure in February and the previous reading of 6.8%.

AUD/USD

Overview
Today last price0.6572
Today Daily Change0.0011
Today Daily Change %0.17
Today daily open0.6561
 
Trends
Daily SMA200.6559
Daily SMA500.6569
Daily SMA1000.6586
Daily SMA2000.6561
 
Levels
Previous Daily High0.6584
Previous Daily Low0.6552
Previous Weekly High0.6639
Previous Weekly Low0.6552
Previous Monthly High0.661
Previous Monthly Low0.6443
Daily Fibonacci 38.2%0.6564
Daily Fibonacci 61.8%0.6572
Daily Pivot Point S10.6548
Daily Pivot Point S20.6534
Daily Pivot Point S30.6516
Daily Pivot Point R10.658
Daily Pivot Point R20.6598
Daily Pivot Point R30.6612

Author

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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