- AUD/USD remains trapped in 0.6930-6877 trading range.
- The Aussie 10-year yield has hit the highest level in over three months.
- The low odds of a year-end RBA rate cut favor upside break.
The AUD/USD pair remains trapped in a narrow range despite the uptick in the Aussie government bond yields.
The pair is currently trading largely unchanged on the day at 0.6896, having hit a low of 0.6886 a few minutes before press time. Notably, the pair has been restricted to a range of 0.6930-0.6877 since Oct. 31.
A range breakout looks likely if we take into account the multi-month highs in the Aussie government bond yields. The 10-year yield is currently trading at 1.254%, the highest level since July 25, representing a 17 basis point gain on the low of 1.08 registered on Nov. 1.
So far, however, the rise in the Aussie government bond yields has failed to put a strong bid under the AUD and so has the easing of US-China trade tensions.
That said, the probability of an upside move still looks strong, courtesy of the falling odds of a year-end rate cut by the Reserve Bank of Australia. The market is currently pricing just 23% chance of a rate cut in December. The central bank kept rates unchanged on Tuesday and sounded less dovish by signaling a pause in rate cut cycle.
|Today last price||0.6897|
|Today Daily Change||0.0003|
|Today Daily Change %||0.04|
|Today daily open||0.6894|
|Previous Daily High||0.6929|
|Previous Daily Low||0.686|
|Previous Weekly High||0.693|
|Previous Weekly Low||0.681|
|Previous Monthly High||0.693|
|Previous Monthly Low||0.667|
|Daily Fibonacci 38.2%||0.6903|
|Daily Fibonacci 61.8%||0.6886|
|Daily Pivot Point S1||0.686|
|Daily Pivot Point S2||0.6825|
|Daily Pivot Point S3||0.6791|
|Daily Pivot Point R1||0.6929|
|Daily Pivot Point R2||0.6963|
|Daily Pivot Point R3||0.6998|
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.