AUD/USD surges to two-week high despite RBA’s ‘no rate change’ decision
- AUD/USD buyers cheer the absence of bearish statements from the RBA.
- Risk tone heavies amid likely retaliation to the Hong Kong Act, trade protectionism.
- Australia’s Q3 GDP, US employment data in focus for now.
AUD/USD rises to the day’s high near 0.6830 during early Tuesday. The Aussie pair extends the previous run-up as RBA refrains from providing any clear hints to unconventional monetary policy tools, praises recent rate cuts.
The Reserve Bank of Australia (RBA) matched broad market consensus while announcing no changes to its benchmark interest rate of 0.75%. However, details from the Rate Statement suggest the recent rate cuts supporting employment and income growth.
Read: RBA: Rates to remain low for extended period
In response to the United States (US) interference in Hong Kong, China plans to ban all the diplomatic passport-holders from Xinjiang as per the Global Times. The same follows a Reuters’ story wherein the US State Department Official turns down Chinese allegations in the dragon nation’s sanctioning of the US Non-Governmental Organizations (NGOs). Elsewhere, the US keeps its harsh stand against the European Union (EU) automakers whereas it offers additional troubles to Argentina and Brazil while reinstating steel tariffs.
While reasoning the trade protectionism, the US President Donald Trump recently blamed the US Federal Reserve’s easy money policy and strong US dollar (USD).
With this, the market’s risk tone stays sluggish and the US 10-year treasury yields fail to extend the previous run-up to 1.82%. Further, stocks in Asia decline whereas S&P 500 recovers the month-start losses.
Moving on, Australia’s third-quarter (Q3) Gross Domestic Product (GDP), up for publishing on Wednesday, followed by Friday US employment data, will be the key events for the AUD/USD pair traders. While the Aussie GDP might portray recovery on YoY, the US jobs report could keep traders guessing.
Technical Analysis
Buyers can aim for November 06 low near 0.6860 unless witnessing a daily closing below 100-day Simple Moving Average (SMA) level of 0.6815.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
