Share:
AUD/USD advances, trading around 0.6371 after bouncing from daily lows.
Richmond Fed President Thomas Barkin’s comments on the restrictive policy stance, remains undecided for the upcoming FOMC meeting.
Hawkish RBA meeting minutes hint at a potential rate hike in November, with a focus on Q3 inflation data.
The Aussie Dollar (AUD) edges higher vs. the US Dollar (USD) in the mid-North American session, rising more than 0.50% after hitting a daily low of 0.6332. Even though upbeat economic data from the United States (US) warranted lower exchange rates, tilted hawkish Reserve Bank of Australia’s (RBA) minutes bolstered the AUD. At the time of writing, the AUD/USD is trading at 0.6371.
The US economic docket recently featured the Richmond Fed President Thomas Barkin, who said that policy is already restrictive and he’s undecided regarding the upcoming FOMC monetary policy meeting in November. He added the US central bank can’t rely in longer-term higher bond yields to tighten monetary conditions.
Earlier, the US Bureau of Economic Analysis (BEA) revealed that Retail Sales in September crushed estimates of 0.3% MoM as figures jumped 0.7%, as consumers remain resilient. Later, the Federal Reserve announced that Industrial Production picked up despite having interest rates at higher levels.
During the Asian session, the latest Reserve Bank of Australia (RBA) meeting minutes portray the bank as hawkish, keeping the door open for a November hike as RBA officials eye Q3’s inflation report. Aside from this, Chiina’s data would reveal if the second largest economy continues to lose traction, as most analysts expect a slowdown in growth, with estimates circa 4.4% YoY, below the Chinese government projections of 5%.
A weak number on Chinese GDP could weigh on market sentiment, therefore dragging Aussie Dollar (AUD) prices lower. Otherwise, upbeat figures could trigger another AUD/USD pair leg-up.
After forming a bullish-piercing pattern, the AUD/USD extends its gains past Monday’s daily high of 0.6345, though shy of reclaiming 0.6400. A breach of the latter, the pair would test the 50-day moving average (DMA) at 0.6416 before threatening to crack the latest cycle high of 0.6445. On the other hand, the pair would resume its downtrend, towards 0.6300, before the AUD/USD challenges the year-to-date (YTD) low of 0.6285.
Share:
Feed news
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
