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 price 0.6572
Today Daily Change 0.0011
Today Daily Change % 0.17
Today daily open 0.6561
 
Trends
Daily SMA20 0.6559
Daily SMA50 0.6569
Daily SMA100 0.6586
Daily SMA200 0.6561
 
Levels
Previous Daily High 0.6584
Previous Daily Low 0.6552
Previous Weekly High 0.6639
Previous Weekly Low 0.6552
Previous Monthly High 0.661
Previous Monthly Low 0.6443
Daily Fibonacci 38.2% 0.6564
Daily Fibonacci 61.8% 0.6572
Daily Pivot Point S1 0.6548
Daily Pivot Point S2 0.6534
Daily Pivot Point S3 0.6516
Daily Pivot Point R1 0.658
Daily Pivot Point R2 0.6598
Daily Pivot Point R3 0.6612

 

 

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