AUD maintains its decline after the RBA maintains its stance; The AUDUSD Pair hit Important Support on early Asian session trade
AUD suffered initial losses as the RBA left rates of interest steady.
The central bank (RBA) members of the board opted to hold their Official Cash Rate steady at 4.10 percent. During the Oct fiscal policy conference, as many economists predicted.
The RBA’s freshly elected and 9th governor, delivered her maiden monetary policies declaration, highlighting the important features listed under.
Financial regulations may need to be tightened more.
The Board of Directors is steadfast in its aim to restore inflation to its original objective
The latest data point to inflation reverting to the desired band throughout the projection period.
AUD Key Points and Considerations
The AUD’s deficits are being exacerbated by the strengthening American dollar.
The RBA’s present interest rate remains at 4.10 percent
The amount of permits for building activities increased in August.
Rising US Treasury rates, together with conflicting data from the US, support the US dollar.
Additionally, the initial indications of a dip in Chinese output are appearing, with production expanding, Over the very first period in 6 months in Sept. It comes on the back of a slew of additional indicators in the month of August. Such as sales at retail and softening downward challenges. Which showed that economic expansion in the economy that ranks second globally had peaked. A revival in China’s development prospects might be beneficial to Australians.
AUDUSD Technical Analysis
On technical graphs, the AUDUSD has been trading flat for the past thirty days. Having firm barrier close to the -August top of 0.6525 and solid support near its August bottom of 0.6350level. The AUDUSD must move beyond 0.6525 in order for the present negative concerns to dissipate. This breach might pave the road to the 200-day MA – (which is currently around 0.6675). A decline under 0.6350 mark could show negative risks under its Oct of 2022 trough of 0.6170 level
Key Technical Levels
Support levels: 0.6350- 0.6330- 0.6300
Resistance levels: 0.6400- 0.6425- 0.6450
