This week's RBA interest rate resolution or detonation of the market, the Australian dollar bulls still have a chance?
Australia against the US dollar, Monday (August 11) Asian morning trading was weak, the price traded around 0.6515, down 0.05%.
At noon on Tuesday (August 12), the Reserve Bank of Australia's interest rate decision will be the focus of market attention.
Data released by China's National Bureau of Statistics on Saturday (August 10) showed that the producer price index (PPI) fell 3.6% year-on-year in July, lower than expected.
The Reserve Bank of Australia is expected to cut its official cash rate (OCR) by 25 basis points to 3.6% at its August meeting on Tuesday, down from 3.85%. Markets expect RBA President Michele Bullock to maintain his cautious stance on the outlook for monetary policy.
On the dollar side, weak US economic data has prompted traders to expect more rate cuts this year. Markets are now pricing in a near 89% chance of a Fed rate cut at the September meeting and are forecasting a 58 basis point cut by the end of the year. Traders will take more clues from Tuesday's US CPI inflation data for July.
On the technical side, the AUD/USD is back in the ascending channel, supported by the EMA on the 10th, 20th, and 50th days. The RSI is in the bullish area, and the MACD is ready to return to the zero axis, indicating that the overall price continues to move upwards.
(Australian dollar/US dollar daily chart, source network)
At 9:37 Beijing time, the Australian dollar is now trading against the US dollar: 0.6421/22.
Please indicate the source: https://www.daoctech.com/fxschool/5240.html
Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.