somrat4030
Well-known member
Forex Forum, AUD/USD forecast and market analysis.
RBA Decision
The RBA concluded its monetary policy meeting on Monday and remained optimistic about the economy even as inflation rose. In its last meeting of the year, the bank decided to leave its interest rate unchanged at 0.1%. It also decided that it will keep buying A$4 billion bonds per week until February. The bank believes that these purchases are necessary to support the economy.
The bank did not provide a signal of when it will start its rate hike cycle. In the previous meetings, it hinted that the first interest rate hike will come in 2024. In this week's meeting, the bank reiterated that it will be patient enough.
AUD/USD is trading a little higher on the day around 0.7130
The pair is keeping a modest bounce off support at the 0.7000 level so far this week. That owes much to improved risk sentiment in the past two days, though the mood is more mixed today.
As much as the aussie bounce is encouraging, I'm still not entirely convinced. Sure, a risk rally is a positive factor but the Fed-RBA divergence arguably plays a bigger role in my view. For learn every day forex market updates you can join a forex forum. Because, forex forum is a good place for learn more about forex.
The markets have been pricing in the possibility for an eventual Fed liftoff in May 2022 amid worries about the persistent rise in inflationary pressures. Hence, the focus shifts to the release of the US CPI report on Friday, which will influence the Fed's policy outlook and provide a fresh directional impetus to the AUD/USD pair.
Source: fxstreet.com
In the meantime, the US bond yields will drive the USD demand and produce some short-term trading opportunities around the AUD/USD pair. Apart from this, traders will further take cues from geopolitical developments and the broader market risk sentiment amid absent relevant market moving economic releases from the US.
On the other hand, Last day US Stocks ignored Tuesday's bearish U.S. economic data.
The U.S. Oct trade balance was in deficit by -$67.1 billion, wider than expectations of -$66.8 billion. Also, Q3 nonfarm productivity was unexpectedly revised lower to -5.2% (q/q annualized) from -5.0%, weaker than expectations of -4.9% and the biggest decline in more than 60 years. In addition, Oct consumer credit rose +$16.897 billion, weaker than expectations of +$25.000 billion.
Source: barchart.com
You Can learn more about forex trading and currency analysis news and updates at forum.forex
Thank You
