AUDUSD loses ground ahead of RBA's interest rate decision
Updated
On Tuesday, the Australian Dollar (AUD) experienced further losses due to a surge in the US dollar (USD) and US Treasury bond yields. Furthermore, there is added pressure on the AUD/USD pair ahead of the Reserve Bank of Australia's (RBA) interest rate decision. Currently, this pair is being traded at 0.634.
In their upcoming policy meeting on Tuesday, it is expected that the Australian central bank will maintain its current interest rates unchanged. This decision adds to the strain on the Australian pair.
The US Dollar Index (DXY) continued to gain momentum as 10-year US Treasury yields reached their highest point since 2007. As a result, the dollar soared to an eleven-month high following bond data released by pm from United States (US).
When comparing September's figures with those from August, there was an improvement in the US ISM Manufacturing PMI. The Manufacturing Employment Index for September also displayed positive growth; however, Producer Prices declined during that month.
In their upcoming policy meeting on Tuesday, it is expected that the Australian central bank will maintain its current interest rates unchanged. This decision adds to the strain on the Australian pair.
The US Dollar Index (DXY) continued to gain momentum as 10-year US Treasury yields reached their highest point since 2007. As a result, the dollar soared to an eleven-month high following bond data released by pm from United States (US).
When comparing September's figures with those from August, there was an improvement in the US ISM Manufacturing PMI. The Manufacturing Employment Index for September also displayed positive growth; however, Producer Prices declined during that month.
Note
RBA's interest rate decision is announced by the Reserve Bank of Australia. If the RBA takes a hawkish stance on the economy's inflation outlook and raises interest rates then that is a positive or bullish sign for AUD. Likewise, if the RBA takes a dovish stance on the Australian economy and keeps interest rates current or cuts interest rates then that is considered negative or bearish.Note
The newly formed candle fallsNote
The US ISM Manufacturing PMI improved in September compared to August's figures. The Manufacturing Employment Index (September) also showed improvement but Producer Prices fell again in the said monthNote
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