The Australian Dollar (AUD) extends its gains for the third successive session on Tuesday. This rally is fueled by the hawkish comments made by the Reserve Bank of Australia (RBA) Governor Michele Bullock. Furthermore, the AUD/USD pair is finding support from the hawkish tone found in the RBA’s November meeting minutes, rising commodity prices, and reflecting investor optimism about potential additional stimulus measures in China.
Australia’s labor market appears robust, as indicated by Governor Bullock. She believes that the progress in employment can be sustained. Moreover, Bullock notes that underlying demand, rather than just supply issues, is contributing to the inflation challenge, making it a significant concern for the next one or two years.
The Reserve Bank of Australia’s November meeting minutes reveal that the board acknowledged a “credible case” against an immediate rate hike but considered the case for tightening stronger due to increased inflation risks. The decision on further tightening would hinge on data and risk assessment. The minutes stressed the importance of preventing even a modest rise in inflation expectations. Staff forecasts assumed one or two more rate rises, and rising house prices suggested policy might not be overly restrictive.
According to sources cited by Bloomberg, Chinese authorities are expected to take measures to support the real estate sector by drafting a list of 50 eligible developers, both private and state-owned. This list is expected to guide financial institutions in providing support through various means such as bank loans, debt, and equity financing.
US Dollar Index (DXY) extended its decline, nearing three-month lows due to improved risk appetite and lower US Treasury yields. Despite the growth in the United States (US) economy, the Greenback finds itself in a vulnerable position in the short term.
Investors will likely focus on Existing Home Sales and the Chicago Fed National Activity Index from the US. Additionally, the Federal Reserve (Fed) is set to release the minutes from its recent meeting.
Daily Digest Market Movers: Australian Dollar continues to gain ground on hawkish RBA tone
Technical Analysis: Australian Dollar moves above 0.6550, supported by the 23.6% Fibonacci retracement
The Australian Dollar trades higher around the 0.6570 level on Tuesday. The AUD/USD pair may encounter resistance near the psychological level of 0.6600. On the downside, immediate support is anticipated around the psychological level at 0.6550, followed by the 23.6% Fibonacci retracement at 0.6500. If a break occurs below the level, the nine-day Exponential Moving Average (EMA) at 0.6493 could be the next support.
AUD/USD: Daily Chart
Australian Dollar price today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Canadian Dollar.
USD
EUR
GBP
CAD
AUD
JPY
NZD
CHF
USD
-0.09%
-0.14%
0.01%
-0.05%
-0.38%
-0.27%
-0.11%
EUR
0.08%
-0.04%
0.10%
0.01%
-0.31%
-0.19%
-0.02%
GBP
0.14%
0.06%
0.15%
0.06%
-0.25%
-0.13%
0.04%
CAD
-0.01%
-0.10%
-0.14%
-0.09%
-0.40%
-0.29%
-0.11%
AUD
0.06%
-0.01%
-0.06%
0.09%
-0.32%
-0.20%
0.00%
JPY
0.38%
0.28%
0.24%
0.39%
0.30%
0.08%
0.29%
NZD
0.28%
0.19%
0.14%
0.29%
0.21%
-0.11%
0.17%
CHF
0.10%
0.02%
-0.04%
0.11%
0.02%
-0.29%
-0.17%
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
