AUD / USD has dropped more than 50 pips after the last move by the Reserve Bank of Australia (RBA). The pair has fallen from the high of the day at 0.7532 to the three-day lows already tested yesterday at 0.7485.
The Australian central bank kept its interest rates unchanged at 0.10%. However, it decided to discontinue the 10 basis point target for the Australian government bond for April 2024.
Read: RBA Keeps Interest Rates at 0.10% and Drops Yield Curve Target
In addition to the RBA announcement, the cautious mood ahead of crucial events like the Fed’s decision weighs on risk appetite, propping up the safe-haven demand for the US dollar.
The Chinese Ministry of Commerce’s call to guarantee food supply in winter also challenges market sentiment, dragging down AUD / USD prices.
In the next few hours, pre-Fed sentiment may put AUD / USD traders to the test, but confirmation of the bearish pattern keeps sellers hopeful.
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