AUD/USD loses ground below the mid-0.6500s, eyes on RBA Meeting Minutes, PBoC rate decision

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  • AUD/USD trades on a softer note near 0.6532 amid the modest rebound of the USD. 
  • RBA’s Bullock said last week that all options are still on the table in terms of monetary policy decisions.
  • The RBA Meeting Minutes and the People’s Bank of China's (PBoC) interest rate decision will be closely watched events. 

The AUD/USD pair loses traction below the mid-0.6500s during the early Asian trading hours on Tuesday. The Reserve Bank of Australia (RBA) will publish the minutes of its February monetary policy meeting later in the day. The pair currently trades around 0.6532, down 0.12% on the day. 

The RBA governor Michele Bullock said all options are still on the table in terms of monetary policy decisions. However, the central bank needs to make sure that it doesn’t have to backtrack on inflation, and that inflation doesn't get away. Deutsche Bank analysts showed earlier this month that they expected the RBA to cut interest rates as early as May. Still, most analysts anticipate the Reserve Bank to ease policy between June and December.

On the USD’s front, the Federal Reserve (Fed) shifted to a more dovish stance in December, with markets now pricing in rate cuts by summer. Investors will take more cues from the FOMC minutes for the January meeting, with the focus on any discussion around the timing of rate cuts. The markets anticipate the first 25 basis points (bps) rate cut in 2024 as early as June, according to the CME FedWatch Tools. 

Market players will keep an eye on the RBA Meeting Minutes, followed by the People’s Bank of China (PBoC) interest rate decision on Tuesday. A poll of 27 market watchers conducted this week showed that 92.6% of respondents anticipated the five-year LPR to be cut on Tuesday. They expected a reduction of five to 15 basis points.

 

AUD/USD

Overview
Today last price 0.6532
Today Daily Change -0.0001
Today Daily Change % -0.02
Today daily open 0.6533
 
Trends
Daily SMA20 0.6541
Daily SMA50 0.6642
Daily SMA100 0.6544
Daily SMA200 0.6566
 
Levels
Previous Daily High 0.6545
Previous Daily Low 0.6496
Previous Weekly High 0.6545
Previous Weekly Low 0.6443
Previous Monthly High 0.6839
Previous Monthly Low 0.6525
Daily Fibonacci 38.2% 0.6526
Daily Fibonacci 61.8% 0.6515
Daily Pivot Point S1 0.6504
Daily Pivot Point S2 0.6476
Daily Pivot Point S3 0.6456
Daily Pivot Point R1 0.6553
Daily Pivot Point R2 0.6573
Daily Pivot Point R3 0.6601

 






 

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