Created
: 2024.11.20
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Australian Dollar strengthens past 0.6500 mark following hawkish RBA Minutes release
World FX news
Breaking news
Australian Dollar strengthens past 0.6500 mark following hawkish RBA Minutes release
New
2024.11.20 04:54
2024.11.20 04:54
2024.11.20 04:54
- AUD/USD rose by 0.15% to 0.6520 in Tuesday's session.
- Aussie climbed due to hawkish RBA Minutes, a weaker US Dollar, and hopes for Chinese economic stimulus.
- RBA Board members indicated no "immediate need" to adjust the cash rate, leaving the door open for future changes.
The AUD/USD climbed by 0.15% to 0.6520 in Tuesday's Asian trading, driven by several factors. The hawkish Reserve Bank of Australia (RBA) Minutes provided support to the Australian Dollar, as did a weaker US Dollar and hopes for Chinese economic stimulus. The market's attention will now shift to upcoming mid-tier US economic data and speeches by Federal Reserve (Fed) officials, which could further influence the pair's movement.
The AUD/USD has rebounded as the US Dollar weakened, potentially aided by hawkish RBA sentiment. However, the Aussie faces challenges due to weak domestic and Chinese economic data.
Daily digest market movers: Australian Dollar gains ground aided by hawkish RBA and weaker USD
- The RBA Board remains vigilant to upside inflation risks and believes policy needs to remain restrictive.
- According to the Minutes, the Board sees no "immediate need" to change the cash rate, but nothing is ruled out regarding future changes.
- The Board discussed scenarios where policy would need to stay restrictive for longer or tighten further.
- The report showed that the bank considers that rates might need to rise if the Board judged that policy was not as restrictive as assumed.
AUD/USD technical outlook: Indicators are in recovery mode but still in negative territory
Technical indicators for the AUD/USD pair continue to show signs of recovery, with both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) trending higher. However, they remain in negative territory, suggesting that the downtrend is not yet over.
For a sustained recovery to be confirmed, buyers will need to push the indicators back into positive territory and hold them there. The conquering of the 0.6580 level, where the 20-day Simple Moving Average (SMA) converges, would be a strong sign that the pair has recovered.
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment - whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) - is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia's largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia's largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
Last updated
: 2024.11.20
Related articles
EUR/USD looks for higher ground above 1.06
32 minutes agoUkraine hits Russia with US ATACMS missiles, Moscow says
45 minutes agoGBP/USD churns below 1.27 ahead of UK CPI inflation print
45 minutes agoUSD/CAD softens to near 1.3950 on hotter Canadian CPI data, eyes on geopolitical risks
2024.11.20 08:20EUR/AUD Price Forecast: Dips below 50-day SMA, sellers eye 1.6200
2024.11.20 07:40NZD/USD Price Analysis: Pair trades higher in recovery as buyers attempt to take control
2024.11.20 06:50
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
EUR/USD looks for higher ground above 1.06
EUR/USD chewed through chart paper between 1.0550 and 1.0600 levels on Tuesday, testing into the low side but staging a recovery to add a thin 0.14% on the day.
New
2024.11.20 08:56Ukraine hits Russia with US ATACMS missiles, Moscow says
Ukraine used US ATACMS missiles to strike Russian territory on Tuesday, the Russian government said, marking a significant uptick in hostilities on the 1,000th day of the conflict, per Reuters.
New
2024.11.20 08:43GBP/USD churns below 1.27 ahead of UK CPI inflation print
GBP/USD churned chart paper just south of 1.2700 on Tuesday as Cable traders brace for a decently-sized UK data dump due on Wednesday, headlined by UK Consumer Price Index (CPI) inflation figures for October.
New
2024.11.20 08:43USD/CAD softens to near 1.3950 on hotter Canadian CPI data, eyes on geopolitical risks
The USD/CAD pair trades with mild losses around 1.3955 during the early Asian session on Wednesday.
New
2024.11.20 08:20EUR/AUD Price Forecast: Dips below 50-day SMA, sellers eye 1.6200
On Tuesday, the EUR/AUD tumbled over 0.39% following the release of the last meeting minutes of the Reserve Bank of Australia (RBA).
New
2024.11.20 07:40Gold price soars as geopolitical tensions increase safe-haven demand
Gold posted back-to-back positive days of gains, climbing some 0.70% on Tuesday due to risk aversion amid heightened tensions in the Russia-Ukraine conflict.
New
2024.11.20 06:56NZD/USD Price Analysis: Pair trades higher in recovery as buyers attempt to take control
The NZD/USD climbed by 0.31% to 0.5910 in Tuesday's session, continuing its recovery as buyers gained further ground and pushed back the sellers' attempts.
New
2024.11.20 06:50Canadian Dollar extends rebound on upshot CPI print
The Canadian Dollar (CAD) caught a bid on Tuesday, rising for a second straight day against the Greenback after Canadian Consumer Price Index (CPI) inflation rose again in October.
New
2024.11.20 05:24Australian Dollar strengthens past 0.6500 mark following hawkish RBA Minutes release
The AUD/USD climbed by 0.15% to 0.6520 in Tuesday's Asian trading, driven by several factors.
New
2024.11.20 04:53Forex Today: UK inflation comes next amid doubts around extra BoE easing
The US Dollar navigated without a clear direction in a context dominated by the resurgence of Russia-Ukraine geopolitical concerns and the subsequent search for safe havens.
New
2024.11.20 04:53Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
