AUD/USD moves upward toward a three-month high near 0.6520, RBA decision eyed

AUD/USD extends its gains on subdued US Dollar after weaker NFP data.
Aussie Dollar receives upward support as the RBA is expected to increase interest rates by 25 basis points.
Greenback faces challenges on Fed’s dovish tone regarding monetary policy tightening in December.

Akhtar Faruqui FXStreet

AUD/USD continues on a four-day winning streak, gearing up for the Reserve Bank of Australia's (RBA) interest rate decision set to be unveiled on Tuesday. The AUD/USD pair holds strong around 0.6520 during the Asian session on Monday, aiming to mark a three-month high.

Anticipated to increase by 25 basis points, the RBA's decision aligns with Aussie inflation hovering at the edges supporting the Aussie Dollar (AUD). The AUD/USD pair is further buoyed by a surge in risk appetite, fueled by the expectation that the US Federal Reserve (Fed) has concluded its monetary policy tightening after cooling economic data from the United States (US), potentially signaling no interest rate hike in the upcoming December meeting.

US Dollar Index (DXY) aims to maintain stability following a significant dip, hovering around 105.10 at the time of writing. The 10-year US bond yield, currently at 4.48%, reflects a negative inclination after the release of weaker nonfarm payrolls on Friday, which fell below expectations, contributing to the subdued sentiment for the US Dollar (USD).

US Bureau of Labor Statistics released US NFP data, revealing a figure of 150K for October. This fell short of the anticipated 180K and marked a significant decline from the 297K recorded in September. Average Hourly Earnings (MoM) declined to 0.2% instead of being consistent at 0.3% as expected. While year-over-year came in at 4.1% against the 4.0% expectations.

Market participants will keenly watch Australia's interest rate decision and China's release of Trade Balance data on Tuesday, given the strong trade ties between the two nations. On the US side, the Michigan Consumer Sentiment Index will be eyed later in the week.

AUD/USD: important levels to watch

Overview
Today last price	0.6516
Today Daily Change	0.0003
Today Daily Change %	0.05
Today daily open	0.6513

Trends
Daily SMA20	0.6363
Daily SMA50	0.6394
Daily SMA100	0.6515
Daily SMA200	0.6622

Levels
Previous Daily High	0.6518
Previous Daily Low	0.642
Previous Weekly High	0.6518
Previous Weekly Low	0.6315
Previous Monthly High	0.6445
Previous Monthly Low	0.627
Daily Fibonacci 38.2%	0.6481
Daily Fibonacci 61.8%	0.6458
Daily Pivot Point S1	0.6449
Daily Pivot Point S2	0.6385
Daily Pivot Point S3	0.635
Daily Pivot Point R1	0.6548
Daily Pivot Point R2	0.6582
Daily Pivot Point R3	0.6646

Author

Akhtar Faruqui

FXStreet

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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