Australian Dollar Gains as RBA Decision and U.S. Election Drive Market
Press Hub UCapital
Share:
The Australian Dollar (AUD) has gained traction against the U.S. Dollar (USD) as the Reserve Bank of Australia (RBA) prepares to hold rates steady, supported by rising domestic inflation. Additionally, uncertainty surrounding the U.S. presidential election has weakened the USD, amplifying AUD/USD’s gains. This week’s RBA decision and U.S. election outcome could provide critical direction for the currency pair.
Australian Dollar Finds Support Ahead of Key RBA and U.S. Events
The AUD/USD pair is trading near 0.6600, benefiting from Australia’s rising inflation and steady interest rates while the USD faces selling pressure ahead of the U.S. election. The Melbourne Institute’s TD-MI Inflation Gauge showed a 0.3% increase in October, reinforcing expectations that the RBA will maintain its cash rate at 4.35%.
Market Focus Shifts to U.S. Election Uncertainty and Fed Decision
The upcoming U.S. presidential election has contributed to USD volatility, as the latest polls indicate a tight race, with Harris leading in several battleground states. In addition, the U.S. Federal Reserve is expected to cut rates by 25 basis points, a move largely priced in but still critical for market sentiment. Investors remain cautious as safe-haven flows may boost the USD amid political uncertainty.
Technical Levels: Key Support and Resistance for AUD/USD
On the technical front, AUD/USD faces resistance at the nine-day EMA around 0.6602, followed by the 14-day EMA at 0.6625. A rise above these levels could shift momentum to the upside, targeting 0.6700. On the downside, immediate support lies at 0.6536, with a break below potentially driving AUD/USD to the psychological level of 0.6500.
Outlook for AUD/USD Amid Global Economic Developments
China’s recent economic indicators and stimulus discussions could provide additional support for the AUD due to close trade ties with Australia. Investors will also monitor key data points from the U.S. this week, including Nonfarm Payrolls and inflation metrics, to gauge further USD movement. With AUD/USD at a crossroads, the upcoming RBA meeting and election results are likely to determine its trajectory.
Australian Dollar Finds Support Ahead of Key RBA and U.S. Events
The AUD/USD pair is trading near 0.6600, benefiting from Australia’s rising inflation and steady interest rates while the USD faces selling pressure ahead of the U.S. election. The Melbourne Institute’s TD-MI Inflation Gauge showed a 0.3% increase in October, reinforcing expectations that the RBA will maintain its cash rate at 4.35%.
Market Focus Shifts to U.S. Election Uncertainty and Fed Decision
The upcoming U.S. presidential election has contributed to USD volatility, as the latest polls indicate a tight race, with Harris leading in several battleground states. In addition, the U.S. Federal Reserve is expected to cut rates by 25 basis points, a move largely priced in but still critical for market sentiment. Investors remain cautious as safe-haven flows may boost the USD amid political uncertainty.
Technical Levels: Key Support and Resistance for AUD/USD
On the technical front, AUD/USD faces resistance at the nine-day EMA around 0.6602, followed by the 14-day EMA at 0.6625. A rise above these levels could shift momentum to the upside, targeting 0.6700. On the downside, immediate support lies at 0.6536, with a break below potentially driving AUD/USD to the psychological level of 0.6500.
Outlook for AUD/USD Amid Global Economic Developments
China’s recent economic indicators and stimulus discussions could provide additional support for the AUD due to close trade ties with Australia. Investors will also monitor key data points from the U.S. this week, including Nonfarm Payrolls and inflation metrics, to gauge further USD movement. With AUD/USD at a crossroads, the upcoming RBA meeting and election results are likely to determine its trajectory.