- AUD/USD pares gains as US dollar turns positive on risk aversion.
- The RBA raises rates 25 basis points, as expected.
- Australia will report third-quarter GDP growth on Wednesday.
The AUD/USD rises modestly on Tuesday, recovering a small part of Monday’s losses. The recovery from below 0.6700 found resistance below 0.6750. The US dollar posts mixed results as Wall Street falls again.
After the RBA, the focus is on the data
On Tuesday, the Reserve Bank of Australia (RBA) raised the key interest rate by 25 basis points, as expected. The central bank stated that it expected further increases. “The volume and timing of future hikes will depend on the data and outlook for inflation and the labor market,” the RBA stated in its monetary policy statement. The Australian dollar gained modestly after the decision.
Third quarter growth figures will be released in Australia on Wednesday. The market consensus points to an increase in GDP of 0.7%, with an annual rate that would go from 3.6% to 6.3%.
AUD/USD failed to benefit and remains under pressure amid global risk aversion on Tuesday. The Dow Jones fell 0.43%, adding to Monday’s losses. Crude Oil prices are down 0.40%, approaching 2022 lows and gold erases daily gains.
“We think the reopening in China and the rebound in Australian commodity export prices could provide the AUD with some relative support against other cyclical currencies, even if we expect AUD/USD to decline modestly amid tightening conditions.” financial statements and broad USD strength,” Danske Bank analysts said.
AUD/USD is approaching 0.6700 again. A consolidation below would further weaken near-term prospects, suggesting a test of the next support seen around 0.6660/65. To the upside, immediate resistance lies at 0.6745/50. A recovery above 0.6775 would strengthen the Aussie.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
