AUD/USD slumping back into 0.6600 as Aussie backslides ahead of RBA rate call

  • The AUD/USD is down over a full percent in one-sided action on Monday.
  • The Aussie has seen Friday’s gains entirely pared away as markets bid up the US Dollar.
  • RBA broadly expected to stand pat on rates once more as the Australian economy weakens.

The AUD/USD has steadily fallen on Monday, backsliding a full percent plus extra and paring back last week’s late rally, sending the Aussie (AUD) back towards the 0.6600 handle against the US Dollar (USD).

The Reserve Bank of Australia (RBA) is broadly expected to hold interest rates at 12-year highs of 4.35% for the December rate call, scheduled to be announced at 03:30 GMT.

See More: Australia Interest Rate Decision Preview

Market focus will be on RBA Governor Michele Bullock’s ensuing press conference as investors attempt to glean as much forward guidance out of the RBA’s statements as possible.

The RBA gave an additional 25 basis point rate hike in November as inflation continues to plague the Australian economy, but hampered economic growth and unsteady domestic market pressures are leaving the RBA stuck between a rock and a hard place. 

RBA expected to hold at 4.35%

Further rate hikes threaten to further destabilize the Australian economy, and too little action on rates in the face of still-high inflation threatens to exacerbate inflation in a self-fulfilling prophecy cycle of prices running ahead of consumer expectations of further inflation.

With Aussie markets focusing squarely on the RBA, the Aussie central bank’s rate statement will dictate the near-term flows of the AUD, but near-term moves will be quickly capped off heading into the mid-week as investors gear up for 2023’s final US Nonfarm Payrolls print due on Friday.

AUD/USD Technical Outlook

The Aussie’s Monday backslide sees 0.6600 back on the table, wiping away Friday’s bull rally into 0.6690. The AUD/USD’s inability to reclaim the 0.6700 handle is exacerbating downside flows, and the pair is set for an intraday clash with the 200-hour Simple Moving Average (SMA).

The AUD/USD has seen a bullish recovery in recent weeks, climbing nearly 7% from October’s bottom bids at 0.6270. Further bullish topside is looking limited with prices struggling to develop momentum at the 200-day SMA, but bidders will be looking for an upside continuation if an extended decline sees the pair challenging the 50-day SMA rising into 0.6450.

AUD/USD Hourly Chart

AUD/USD Daily Chart

AUD/USD Technical Levels


Today last price 0.6612
Today Daily Change -0.0062
Today Daily Change % -0.93
Today daily open 0.6674
Daily SMA20 0.6519
Daily SMA50 0.6428
Daily SMA100 0.6476
Daily SMA200 0.658
Previous Daily High 0.6676
Previous Daily Low 0.66
Previous Weekly High 0.6677
Previous Weekly Low 0.6567
Previous Monthly High 0.6677
Previous Monthly Low 0.6318
Daily Fibonacci 38.2% 0.6646
Daily Fibonacci 61.8% 0.6629
Daily Pivot Point S1 0.6624
Daily Pivot Point S2 0.6574
Daily Pivot Point S3 0.6548
Daily Pivot Point R1 0.67
Daily Pivot Point R2 0.6726
Daily Pivot Point R3 0.6776



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

EUR/USD slides to multi-month lows below 1.0650

EUR/USD slides to multi-month lows below 1.0650

EUR/USD stays under heavy bearish pressure and trades at its lowest level since November below 1.0650. Divergent ECB-Fed policy outlooks and the risk-averse market atmosphere keep the US Dollar strongly bid and weigh on the pair.


GBP/USD extends decline below 1.2450 on sustained USD strength

GBP/USD extends decline below 1.2450 on sustained USD strength

GBP/USD extends losses and trades at fresh multi-month lows below 1.2450 even after the January month UK GDP was revised higher to 0.3%. The negative shift seen in risk mood fuels another leg higher in the USD and drags the pair lower.


Gold advances to new historic high above $2,400

Gold advances to new historic high above $2,400

Gold gathers bullish momentum ahead of the weekend and trades at a new record high above $2,400. Escalating geopolitical tensions help XAU/USD continue to push up despite the broad-based US Dollar strength.

Gold News

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Rich Dad Poor Dad author Robert Kiyosaki says he will not buy Bitcoin ETFs. Kiyosaki stated his dislike for Wall Street’s financial products and preferred packaging his own. 

Read more

Five fundamentals for the week ahead: Israel-Iran tensions, US Retail Sales, and more Premium

Five fundamentals for the week ahead: Israel-Iran tensions, US Retail Sales, and more

US Retail Sales data will provide an updated snapshot of the health of the economy. Chinese GDP may confirm the narrative that Beijing's stimulus is working. UK inflation data may push the Bank of England to early rate cuts.

Read more