- The Australian dollar barely moves as traders could have already set a price with their RBA rate reduction decision.
- The Reserve Bank of Australia has cut its official cash rate by 25 basis points to 4.10%.
- Fed Gov. Michelle Bowman warned that profit risks continued, underscoring the need to make more clear before considering interest rate cuts.
The Australian Dollar (AUD) will recover daily losses following a policy decision by the Reserve Bank of Australia (RBA) on Tuesday. The central bank decided to cut its official cash rate (OCR) by 4.10% on Tuesday by 25 basis points (BPS) (BPS), marking its first rate cut in four years, marking its four-year period. I did.
Reserve Bank of Australia Governor Michelle Bullock addressed the media after the policy meeting, saying high interest rates had a clear impact. However, Bullock emphasized that it is too early to declare victory over inflation. She also highlighted an unexpectedly strong job market and revealed that market expectations for further interest rate cuts are not guaranteed.
Australia's “Big 4” lenders CBA, NAB, ANZ and Westpac cut interest rates by 25 basis points on Tuesday following the central bank's decision to cut interest rates for the first time since November 2020.
Inflation data for December shows a slower price pressure in Australia, with the latest quarterly quarterly consumer price index (CPI) below forecast for the final quarter of 2024. The RBA's preferred inflation measure, the trimmed average CPI, rose 0.5% in the quarter. Below the expected 0.6% – the annual rate fell from 3.5% to 3.2%.
The AUD/USD pair found support following President Donald Trump's decision to delay mutual tariff implementation. Additionally, the US Dollar (USD) promotes speculation that the Federal Reserve could cut interest rates later this year, despite a disappointing US retail sales report leaving inflation concerns behind. As a result, it was weakened.
Australian dollars face challenges amid improvements in the US dollar as the Treasury rises
- The US Dollar Index (DXY), which tracks the performance of the US dollar against six major currencies, has increased the edge after registering losses in the last three consecutive sessions due to improved US Treasury yields . DXY trades at around 106.80, with the US Treasury yields for 2 and 10 years at 4.26% and 4.50% respectively.
- Federal Reserve Gov. Michelle Bowman said Monday that rising asset prices may have slowed the Fed's recent advances inflation. Bowman expects inflation to decline, but she warned that there is still a risk of upside down and emphasized the need for more certainty before considering interest rate cuts.
- Meanwhile, Fed Gov. Christopher Waller admitted late Monday that progress was “extremely slow” while inflation was improving. Waller emphasized that the Fed should not allow policy uncertainty to hinder data-driven decision-making.
- The US Census Bureau reported on Friday that retail sales fell 0.9% in January following a revised 0.7% increase in December (previously reported as 0.4%). . This decline was sharper than expected that the market was expecting a 0.1% drop.
- Fed Chair Jerome Powell said that because of the strength of the job market and solid economic growth, board officials “don't need to hurry,” and board officials “don't need to hurry,” Congress said. He said he reported it every six months. Tariff policies could put more upward pressure on prices, making it difficult for central banks to lower fees.
- China's national president Xi Jinping led a meeting Monday with Alibaba co-founder Jack Ma and other prominent entrepreneurs, signaling Beijing's new support for the private sector, according to Bloomberg. . Xi highlighted the need to eliminate barriers that hinder equal access to production resources and fair market competition.
Australian dollars will move below 0.6350. Support will be displayed on the 9-day EMA
The AUD/USD traded nearly 0.6340 on Tuesday, rising within a rising channel pattern, indicating a bullish market bias. The 14-day relative strength index (RSI) remains above the 50 level, further supporting the bullish outlook.
Conversely, the AUD/USD pair challenges the upper limit of the ascending channel at 0.6390, followed by significant psychological resistance at 0.6400.
Support levels include a 9-day EMA of 0.6316, followed by a 14-day EMA of 0.6300. A stronger support zone is located near the lower boundary of the ascending channel at 0.6280.
AUD/USD: Daily Charts
Australian dollar prices today
The table below shows the rate of change in the Australian Dollar (AUD) for today's listed major currencies. The Australian dollar was the weakest against the US dollar.
| USD | EUR | GBP | JPY | CAD | aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.16% | 0.16% | 0.36% | 0.09% | 0.20% | 0.50% | 0.12% | |
| EUR | -0.16% | 0.00% | 0.19% | -0.07% | 0.04% | 0.34% | -0.04% | |
| GBP | -0.16% | -0.00% | 0.21% | -0.07% | 0.04% | 0.34% | -0.04% | |
| JPY | -0.36% | -0.19% | -0.21% | -0.27% | -0.16% | 0.12% | -0.25% | |
| CAD | -0.09% | 0.07% | 0.07% | 0.27% | 0.11% | 0.41% | 0.03% | |
| aud | -0.20% | -0.04% | -0.04% | 0.16% | -0.11% | 0.30% | -0.09% | |
| NZD | -0.50% | -0.34% | -0.34% | -0.12% | -0.41% | -0.30% | -0.37% | |
| CHF | -0.12% | 0.04% | 0.04% | 0.25% | -0.03% | 0.09% | 0.37% |
The heatmap shows the rate of change of each other's major currencies. The base currency is selected from the left column, and the estimated currency is selected from the top row. For example, if you select Australian dollars from the left column and move along the horizon to US dollars, the rate of change shown in the box represents AUD (base)/USD (QUOTE).
