AUDUSD accelerates above 0.6660 ahead of PBOC monetary policy

The AUDUSD pair has advanced after sensing support of around 0.6660 in the early Asian session. Earlier, the asset struggled as investors were having anxiety ahead of the interest rate decision by the People’s Bank of China (PBOC).

The risk impulse is quiet as potential triggers for a decisive action are absent from the market. Meanwhile, the US dollar index (DXY) is facing temporary barricades around 107.00 as investors have shifted their focus toward the release of the US Durable Goods Orders data.

Meanwhile, the returns on US government bonds could face some struggle after a rebound as Atlanta Federal Reserve (Fed) President Raphael Bostic see the termination of the 75 basis points (bps) rate hike regime from now.

Fed policymaker on Saturday cited that he is ready to "move away" from three-quarter-point rate hikes at the Fed's December meeting, reported Reuters. He further added that Fed's target policy rate will add no more than another percentage point to tackle inflation. After that, the Fed would need to pause and "let the economic dynamics play out," given that it may take what he estimates as anywhere from 12 to 24 months for the impact of Fed rate increases to be "fully realized."

On Monday, the monetary policy decision by the PBOC will be keenly watched. China’s central bank could move for an expansionary stance as economic projections have been tumbled led by rising Covid-19 cases. Also, vulnerable real estate demand would force injecting more funds into the economy. It is worth noting that Australia is a leading trading partner of China and a rate cut decision by the PBOC would support the Aussie bulls.