- The Australian Dollar held firm as the RBA decided to keep interest rates unchanged in November.
- Australia’s Judo Bank Services and Composite PMIs improved to 51.0 and 50.2, respectively, in October.
- The US dollar faced challenges amid uncertainty surrounding the US presidential election.
The Australian Dollar (AUD) holds its ground after posting gains in the previous session following the release of improved Purchasing Managers’ Index (PMI) data on Tuesday. The Reserve Bank of Australia (RBA) decided to keep the Official Cash Rate (OCR) stable at 4.35%, marking an eighth consecutive pause in November. The central bank is expected to maintain current rates after its monetary policy meeting.
Reserve Bank of Australia (RBA) Governor Michele Bullock emphasizes the need to maintain restrictive interest rates for the time being due to persistent inflationary risks. Despite a tight labor market, wage growth shows signs of slowing.
Australia’s Judo Bank’s final Services PMI reading improved to 51.0 in October from 50.6 in the previous reading. This figure was above the market consensus of 50.6. The Composite PMI rose to 50.2 in October from 49.8 previously. Additionally, China’s Caixin Services PMI rose to 52.0 in October from 50.3 in September.
Investors will closely monitor the outcome of the US presidential election. Former President Donald Trump and Vice President Kamala Harris predicted victory while campaigning in Pennsylvania on Monday on the final frenetic day of an exceptionally close US presidential election.
Daily Market Summary: Australian Dollar Holds Firm After RBA Policy Decision
- Opinion polls show that Trump and Harris are practically tied. The final winner may not be known for days after Tuesday’s vote. Trump has already indicated that he could challenge any unfavorable results, as he did in 2020.
- The US dollar (USD) struggled amid election-related uncertainty, with strategists linking the currency’s weakness to a Des Moines Register/Mediacom poll showing Democratic candidate Kamala Harris leading Republican candidate Donald Trump 47%. to 44% in Iowa.
- The US Federal Reserve’s (Fed) policy decision on Thursday will also be closely watched. Markets expect a modest 25 basis point rate cut this week. The CME’s FedWatch tool shows a 99.5% probability of a quarter-point rate cut by the Fed in November.
- The TD-MI Inflation Index rose 0.3% month-on-month in October, up from a 0.1% rise the previous month, marking the highest reading since July and preceding the RBA’s policy meeting in November. On an annual basis, the index rose 3.0%, compared to 2.6% previously.
- ANZ Australia job ads rose 0.3% month-on-month in October, a notable slowdown from the upwardly revised 2.3% increase in September. Despite the weaker growth, this marks the second consecutive month of increases.
- Chinese Trade Minister Wang Wentao met with Australian Trade Minister Don Farrell on Sunday. China expressed hopes that Australia will continue to improve its business environment and ensure fair and equitable treatment for Chinese companies.
- The U.S. Bureau of Labor Statistics (BLS) said October nonfarm payrolls increased by only 12,000, following a revised September gain of 223,000 (up from 254,000), which fell well short of expectations. market of 113,000. Meanwhile, the unemployment rate held steady at 4.1% in October, matching the consensus forecast.
- The Australian Producer Price Index rose 0.9% quarter-on-quarter in the third quarter, following a 1.0% increase in the previous period and beating market forecasts for a 0.7% increase. This marks the 17th consecutive period of producer inflation. On an annual basis, PPI growth slowed to 3.9% in the third quarter, down from a 4.8% increase in the previous quarter.
Technical Analysis: Australian Dollar holds below 0.6600, nine-day EMA
AUD/USD is trading near 0.6590 on Tuesday, with the daily chart hinting at a possible relaxation of the downtrend as the pair tests the nine-day exponential moving average (EMA). However, the 14-day Relative Strength Index (RSI) remains below 50, indicating that the bearish outlook persists.
In terms of resistance, AUD/USD faces the nine-day EMA at 0.6596, with additional resistance at the 14-day EMA at 0.6618. A break above these levels could strengthen the pair, possibly targeting the psychological level of 0.6700.
In terms of support, immediate support is around the three-month low at 0.6536. A fall below this level could take the pair towards the key psychological support at 0.6500.
AUD/USD: Daily Chart
Australian Dollar PRICE Today
The table below shows the percentage change of the Australian Dollar (AUD) against major currencies today. Australian dollar was the strongest currency against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.00% | -0.03% | 0.17% | -0.01% | -0.14% | -0.11% | 0.03% | |
| EUR | 0.00% | -0.02% | 0.18% | -0.01% | -0.16% | -0.10% | 0.03% | |
| GBP | 0.03% | 0.02% | 0.20% | -0.00% | -0.14% | -0.09% | 0.06% | |
| JPY | -0.17% | -0.18% | -0.20% | -0.19% | -0.32% | -0.32% | -0.15% | |
| CAD | 0.01% | 0.00% | 0.00% | 0.19% | -0.13% | -0.11% | 0.04% | |
| AUD | 0.14% | 0.16% | 0.14% | 0.32% | 0.13% | 0.03% | 0.18% | |
| NZD | 0.11% | 0.10% | 0.09% | 0.32% | 0.11% | -0.03% | 0.14% | |
| CHF | -0.03% | -0.03% | -0.06% | 0.15% | -0.04% | -0.18% | -0.14% |
The heat map shows the percentage changes of the major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change shown in the box will represent AUD (base)/USD (quote).
