Aussie Slips Following RBA Meeting Minutes, Strong Dollar

Fundamental Analysis

* Cautious Approach: The Australian dollar continues to weaken against the U.S. dollar as markets digest the RBA’s September meeting minutes, which reveal a cautious stance. The Reserve Bank of Australia’s board discussed potential future interest rate cuts and hikes but concluded that the current cash rate remains the best option to balance inflation risks and the labor market. Additionally, the Aussie dollar faces downward pressure from a strong U.S. dollar, buoyed by diminishing expectations of a significant Fed rate cut. Following robust U.S. jobs data, the chances of a 50-basis-point cut in November or December have dropped to zero, with a 90% probability of a 25-basis-point reduction next month.

Technical Analysis

* Technical Breakout: AUDUSD was traded lower while currently testing the support level 0.67550. MACD which illustrates persistent bearish momentum signal suggest the pair to likely extend its losses further.

*Resistance and Support: If the bearish momentum persists, there’s a strong likelihood that the price will potentially head towards the support level 0.66900 after it breach below the level 0.67550. Conversely, a potential reversal is also to be expected and the price could head back towards 0.68200.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Looking ahead, investors will turn their attention to key U.S. economic releases, including inflation data, jobless claims, FOMC Meeting Minutes, all of which are expected to capture market focus this week.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US and Australia data, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

Grab the trading opportunity and dive into the action risk-free with a free demo account. It is the perfect way to hone your skills and explore the exciting world of trading!

Open Your Free Demo Account And Start Trading Risk-Free

Join Now

Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.