AUD/USD holds larger in post-RBA buying and selling

The RBA held its money fee regular in a extra hawkish determination, although largely anticipated. AUD/USD was barely modified and solely hovered inside a 15 pips vary after the assertion and press convention. However the pair is extending larger now, as much as zero.6618 from round zero.6590 earlier within the day.

There’s not a lot to it as market flows now are going to be robust to trace in isolation. The US election is casting a big shadow over every little thing and that’s going to be what drives the larger market strikes over the subsequent few classes.

So, I would not look an excessive amount of within the AUD/USD rise for now. In any case, the pair nonetheless has some key technical resistance to get by on the charts. The 200-day transferring common (blue line) at zero.6627 stays a key stage by way of limiting any additional upside for now.

However relying on the US election outcomes, this may very well be a pair that’s undoubtedly intrigue. Particularly, if Harris does edge Trump to win the presidency.

A weaker greenback and decrease yields would enable for merchants to maintain specializing in the divergent coverage path between the RBA and Fed once more, reigniting a possible bounce in AUD/USD. That’s actually one spot to observe contemplating how the RBA is standing out to the remainder of its friends within the present central financial institution cycle.

This text was written by Justin Low at www.ubaidahsan.com.



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