The pair AUDUSD fell sharply after the Reserve Bank of Australia (RBA) decided to keep interest rates at 4.35%. The rate of decline is reaching its lowest level in more than a few weeks today.
The Australian dollar (AUD) weakened broadly after the Reserve Bank of Australia (RBA) decided to leave interest rates unchanged. The bank said more economic guidance is needed before considering further changes in monetary policy.
In an accompanying policy statement, the RBA noted that October’s monthly CPI indicator suggested that inflation remained moderate and labor market conditions remained tight, but also gradually weakened. This suggested that further rate hikes may not be possible, which combined with a weaker risk tone weighed heavily on risk-sensitive Australia.
Investors remain concerned about the darkening global outlook and worsening economic conditions in China. In addition, global risk sentiment was weighed down by an attack on US ships in the Red Sea over the weekend, raising concerns about the wider conflict in the Middle East.
Technical Outlook – AUDUSD:
The AUD/USD pair retreated from a high of 0.66906 to trade at 0.6575, down 0.66% today.
The formation of two long black candlesticks indicates that the pair is bearish. Apart from this, RSI 14 and ITS 9 SMA also gives a negative crossover. It looks like the pair will soon test the immediate support at 0.65190. However, downside may be limited as there is room for a pullback unless the pair trades above 0.65175.
Alternatively, a break below 0.65175 will pull to the next pair of support at 0.65060-0.64170..
Commodity Samachar
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