AUD/USD edges higher above 0.6600, all eyes on RBA rate decision

FXStreet
Updated Jun 18, 2024 01:05
Mitrade
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Source: DepositPhotos

■  AUD/USD holds positive ground around 0.6615 amid the softer US Dollar on Tuesday.

■  The RBA is anticipated to keep rates steady at 4.35% at its June meeting on Tuesday. 

■  The hawkish tones of the Fed officials might cap the upside for the pair in the near term.


The AUD/USD pair snaps the three-day losing streak near 0.6615 on Tuesday during the early Asian session. The weaker US Dollar (USD) provides some support to the pair. Investors will closely monitor the Reserve Bank of Australia (RBA) interest rate decision and Governor Michele Bullock’s press conference. 

The RBA is likely to keep the Official Cash Rate (OCR) unchanged at 4.35% for the fifth consecutive meeting in June. The stubbornly high inflation in Australia prompted the expectation that the RBA might delay the interest rate cut. If the RBA delivers a hawkish message after the policy meeting, this could lift the Australian Dollar (AUD) and create a tailwind for the pair. However, the failure to affirm the hawkish expectations could attract some sellers to the Aussie. 

Last week, ANZ bank analysts pushed back its prediction of an interest rate cut until next year, expecting the Australian central bank wouldn't lower the cash rate until next February due to hotter-than-expected inflation data in the last two months. "The stronger than expected Q1 CPI also makes it hard to see the RBA being sufficiently confident that inflation will return to and stay in the band by the time the November meeting comes around," said ANZ head of Australian economics Adam Boyton.

On the USD’s front, US Federal Reserve (Fed) Chairman Jerome Powell refrained from hinting at a specific timeline for rate cuts and reiterated a data-dependent approach in the post-meeting press conference. Cleveland Fed Bank President Loretta Mester and Chicago Fed Bank President Austan Goolsebee emphasized the need for more confidence and said they would wait for the data. Nonetheless, Minneapolis Fed President Neel Kashkari on Sunday said that it's a "reasonable prediction" that the Fed will cut interest rates once this year, waiting until December to do it. The hawkish stance of Fed officials continues to underpin the Greenback and might cap the upside for the pair in the near term. 


AUD/USD


Overview
Today last price 0.6618
Today Daily Change 0.0005
Today Daily Change % 0.08
Today daily open 0.6613
 
Trends
Daily SMA20 0.6635
Daily SMA50 0.6584
Daily SMA100 0.6564
Daily SMA200 0.6547
 
Levels
Previous Daily High 0.6618
Previous Daily Low 0.6585
Previous Weekly High 0.6704
Previous Weekly Low 0.6576
Previous Monthly High 0.6714
Previous Monthly Low 0.6465
Daily Fibonacci 38.2% 0.6598
Daily Fibonacci 61.8% 0.6606
Daily Pivot Point S1 0.6593
Daily Pivot Point S2 0.6573
Daily Pivot Point S3 0.656
Daily Pivot Point R1 0.6626
Daily Pivot Point R2 0.6638
Daily Pivot Point R3 0.6659

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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