- AUD/USD recovers from 0.6780 following the RBA’s no rate change decision.
- RBA statement praises the Aussie central bank’s performance.
- US dollar recovers from 11-week low amid unrest in the US probing the previous risk-on sentiment.
- China criticizes US President Trump’s take on the riots at home.
AUD/USD gains bids near 0.6790 after the Reserve Bank of Australia (RBA) announced no change in its monetary policy during the early Tuesday.
Read: RBA maintains Official Cash Rate at 0.25%, AUD/USD keeps the red below 0.68
Following the RBA decision, AUD/USD shuns the earlier bearish bias as the Aussie central bank praised the domestic financial system while also saying, “the depth of the downturn will be less than earlier expected.”
Read More: RBA: Accommodative approach will be maintained as long as it is required
Earlier during the day, the quote failed to keep its place near the highest since January 27 as risk-tone sentiment paused after the previous day’s upbeat performance. The reason for the cautious mood could be traced from the civil unrest in the US over the alleged killing of Minnesota’s George Floyd. While the riots have turned severe in New York and Washington, US President Donald Trump showed readiness to take all measures in taming the protests. China used this as an opportunity to criticize US President Trump.
Against this backdrop, US 10-year Treasury yields paused their previous day’s run-up around 0.65% whereas stocks in Australia struggle for direction.
It should also be noted that Australia’s first quarter (Q1) Current Account Balance and Company Gross Operating Profits flashed upbeat reading during the early-Asian session. Though, downbeat trading sentiment pushed the quote lower.
Having witnessed the initial reaction to the RBA’s monetary policy meeting decision, the Aussie traders are likely to keep eyes on the headlines from the US to determine near-term risk sentiment. In doing so, protests in the alleged police killing of George Floyd as well as comments from China and Hong Kong will be the key to follow.
Should the risk-tone remains heavy, amid the unrest in the US, the greenback can extend its recent pullback moves from the multi-day low.
Technical analysis
An ascending trend line from April 14, currently around 0.6815/20, restricts the pair’s immediate upside amid overbought RSI conditions. As a result, sellers might want to enter fresh positions targeting March high surrounding 0.6685. Though, a clear upside past-0.6820 will escalate the quote’s rise towards the early-January lows near 0.6850.
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 retreats below 1.0700 after US GDP data
EUR/USD came under modest bearish pressure and retreated below 1.0700. Although the US data showed that the economy grew at a softer pace than expected in Q1, strong inflation-related details provided a boost to the USD.
GBP/USD declines below 1.2500 as USD rebounds
GBP/USD declined below 1.2500 and erased the majority of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold drops below $2,320 as US yields shoot higher
Gold lost its traction and turned negative on the day below $2,320 in the American session on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, weighing on XAU/USD.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.