AUD/USD recovers intraday losses in the aftermath of RBA minutes


  • AUD/USD revives intraday losses due to hawkish RBA minutes and a slight decline in the US Dollar.
  • Fed officials remain worried over stalled progress in the process of disinflation.
  • Investors await the FOMC minutes of the May meeting for fresh guidance.

The AUD/USD pair rebounds from the intraday low of 0.6650 in Tuesday’s European session. The Aussie asset finds strength as the Reserve Bank of Australia (RBA) minutes of the May meeting have suggested that policymakers discussed over raising interest rates further as risks of inflation remaining skewed on the upside for an extended period have deepened.

A mild recovery move in the Aussie asset is also driven by a slight decline in the US Dollar. The US Dollar struggles to come out of the woods despite hawkish guidance on interest rates by Federal Reserve (Fed) officials have weighed on traders’ bets that are in favor of rate cuts in September. The CME FedWatch tool shows a 61% chance that interest rates will come down from their desired levels. The probability has reduced from 65% recorded a week ago.

Cleveland Fed Bank President Loretta Mester said in an interview with Bloomberg on Monday cautioned that risks to inflation have skewed to the upside, which suggests that three rate-cut are not appropriate this year. She emphasized maintaining interest rates at their current levels. She added that they have additional time to gather more data.

Meanwhile, investors shift focus to the Federal Open Market Committee (FOMC) minutes for the May policy meeting, which will be published on Wednesday. Officials view on the interest rate outlook in the May meeting is expected to have remained hawkish as hotter-than-expected inflation in the January-March period indicated that the progress in the disinflation process has stalled.

AUD/USD

Overview
Today last price 0.6671
Today Daily Change 0.0004
Today Daily Change % 0.06
Today daily open 0.6667
 
Trends
Daily SMA20 0.6588
Daily SMA50 0.6552
Daily SMA100 0.6566
Daily SMA200 0.6526
 
Levels
Previous Daily High 0.6709
Previous Daily Low 0.6662
Previous Weekly High 0.6714
Previous Weekly Low 0.658
Previous Monthly High 0.6644
Previous Monthly Low 0.6362
Daily Fibonacci 38.2% 0.668
Daily Fibonacci 61.8% 0.6691
Daily Pivot Point S1 0.665
Daily Pivot Point S2 0.6632
Daily Pivot Point S3 0.6603
Daily Pivot Point R1 0.6697
Daily Pivot Point R2 0.6727
Daily Pivot Point R3 0.6745

 

 

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