AUD/USD Value Evaluation: Aussie Bulls Cheer RBA’s Hawkish Tone…

• The Reserve Financial institution of Australia saved rates of interest unchanged.

• Australia’s underlying inflation stays excessive at three.5%.

• The greenback was weak on the day of the US election.

The AUD/USD value evaluation signifies renewed bullish sentiment after hawkish remarks on the Reserve Financial institution of Australia coverage assembly. In the meantime, the greenback pulled again as bets supported a Harris win within the US presidential election.

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The Reserve Financial institution of Australia saved rates of interest unchanged on Tuesday, noting that inflation remained too excessive. Furthermore, Australia’s central financial institution warned that rates of interest would possibly keep excessive for longer. 

Notably, the labor market has remained resilient regardless of excessive charges. In the meantime, inflation eased within the third quarter to 2.eight%. Nonetheless, underlying inflation remained excessive at three.5%, conserving policymakers cautious. On the identical time, market individuals are solely absolutely pricing a fee reduce in Could subsequent 12 months. After the assembly, the Australian greenback rose.

However, the greenback was weak on the day of the US election as bets confirmed Kamala in a stronger place. Consequently, merchants unwound the Trump commerce. There was a time when Trump was all the time within the lead in betting websites. This supported the greenback as his insurance policies create a hawkish outlook for Fed coverage.

Trump has proposed elevated tariffs, amongst different modifications that might improve inflation. In the meantime, consultants imagine Kamal would possible proceed with most of Biden’s insurance policies. On this case, the Fed would proceed its rate-cutting cycle, weighing on the greenback. 

The Federal Reserve will meet quickly after the election, and markets anticipate a 25-bps fee reduce. Nonetheless, they are going to focus extra on the messaging on future coverage strikes.

AUD/USD key occasions in the present day

• US ISM providers PMI
• US presidential election
• US congressional elections

AUD/USD technical value evaluation: Pattern reverses after bullish engulfing candle

On the technical aspect, the AUD/USD value is climbing after reversing close to the zero.6550 help stage. The worth sits above the 30-SMA, displaying bulls are within the lead. On the identical time, the RSI has damaged above 50 to help stable bullish momentum. 

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Bulls strengthened sufficient to take management close to the zero.6550 stage. Right here, the value made a bullish engulfing candle, signaling stronger momentum. Quickly after, the value broke above the 30-SMA, confirming a reversal. At present, bulls are eying the zero.6650 resistance stage. If the value breaks above this stage, it’s going to possible attain the zero.6700 resistance.

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