- AUD/USD prints gain on Tuesday in the initial Asian session.
- The US Dollar Index breaks 94.00 amid risk-on sentiment.
- RBA minutes, higher commodity prices, and risk-on mood aid aussie gains.
AUD/USD is picking up the bid, following the release of the Reserve Bank of Australia (RBA) minutes. The pair opens lower and touched an intraday high of 0.7248 before testing the low of 0.7406. At the time of writing, AUD/USD is trading at 0.7421, up 0.12% for the day.
The Reserve Bank of Australia (RBA) in its latest monetary policy meeting minutes showed that the central bank remained optimistic about the economic growth. The economy is expected to recover by December 2021 and to the pre-pandemic level in the second half of 2022. The board members acknowledged that the delta variant interrupted the economic recovery. Despite higher growth projects, the central bank retreated its no interest hike rate stance until the inflation is stable within the 2-3% target band.
In addition to that, China’s growth concerns weighed on the sentiment. Chinese Q3 Gross Domestic Product (GDP) fell 4.9% on a YoY basis, falling below the market consensus of 5.2%. Nevertheless, higher commodity prices provide some support as AUD held six-week highs on the back of higher commodity prices. It is worth noting that the S&P 500 Futures is trading at 4,477, up 0.02% for the day.
The US Dollar Index (DXY), which tracks the performance of the greenback against its six major rivals fell briefly below 94.00.
As for now, traders await US Housing Start, and Building Permits to gauge the market sentiment.
AUD/USD additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD failed just ahead of the 200-day SMA
Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Bitcoin price could be primed for correction as bearish activity grows near $66K area
Bitcoin (BTC) price managed to maintain a northbound trajectory after the April 20 halving, despite bold assertions by analysts that the event would be a “sell the news” situation. However, after four days of strength, the tables could be turning as a dark cloud now hovers above BTC price.
Bank of Japan's predicament: The BOJ is trapped
In this special edition of TradeGATEHub Live Trading, we're joined by guest speaker Tavi @TaviCosta, who shares his insights on the Bank of Japan's current predicament, stating, 'The BOJ is Trapped.'