AUDUSD rises 0.29% amidst anticipation for RBA monetary policy decision and inflation data in Australia

AUDUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.29%	19.8 Pips
Week to-date	0.19%	12.8 Pips
September	0.51%	34.6 Pips

Upcoming key events (London Time)

Tue 05:30 AM AUD RBA Monetary Policy Decision (Cash Rate Target)
Wed 02:30 AM AUD Monthly CPI Indicator (12-mth)

What happened lately

There was no major economic news reported recently. However, the AUDUSD pair experienced an increase of 0.29% on Monday, reaching 0.68304. Much of this movement appears to be in anticipation of significant upcoming economic events in Australia. Specifically, the Reserve Bank of Australia’s Monetary Policy Decision, which includes the Cash Rate Target, is scheduled to be announced on Tuesday at 5:30 AM. Additionally, the Monthly CPI Indicator, which reflects the 12-month Consumer Price Index, is set to be released on Wednesday at 2:30 AM.

As the Reserve Bank of Australia (RBA) prepares to announce its Monetary Policy Decision, market participants are closely watching for any hints of interest rate adjustments. If the RBA decides to raise interest rates, this could strengthen the Australian dollar, as higher rates might attract foreign investment. Conversely, if the RBA maintains or lowers the rates, it could lead to a weaker AUD. Furthermore, the Monthly CPI Indicator will provide insight into inflation trends in Australia. High inflation might prompt the RBA to consider rate hikes in the future, reinforcing a bullish outlook for the AUDUSD pair.

The recent rise in AUDUSD indicates market optimism ahead of the RBA’s decisive economic updates. Traders and investors might be positioning themselves in anticipation of a rate hike or positive inflation data, both of which typically strengthen the AUD. Therefore, the upcoming events are likely to have a substantial impact on the AUDUSD, with potential volatility depending on the outcomes and the market’s interpretations of these economic indicators.

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What can we expect from AUDUSD today?

AUDUSD on Monday rose 0.29% to 0.68304. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for AUDUSD looks bullish as the pair ended higher after Monday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 0.68561 with break above could target R2 at 0.68817 or figure level area. While towards the downside, we are looking at daily low of 0.67998 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.68536 may suggest continuation after recent positive movement.

For the week to-date, take note that AUDUSD is mixed as compared to the prior week.

Key levels to watch out:

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