Overall, AUD/USD is trending upwards. Recently, AUD/USD trended higher into the key level of 0.68.
Yesterday, several Australian states eased social distancing restrictions measures. Also, the Australian government further increases recovery efforts with plans to offer renovation grants to homeowners and to spend another A$5.25 billion to extend a train route to an airport being constructed in west Sydney in consideration.
The Reserve Bank of Australia (RBA) will be announcing their interest rate decision later at 1330 (SGT).
It is expected that the central bank will be holding rate unchanged at the effective lower bound of 0.25%. It is also unlikely that new easing measures will be announced since the Australian economy has not been hit too badly by the COVID-19 pandemic. In fact, the RBA highlighted during the previous monetary policy meeting that the government bond markets have improved and the central bank has scaled back the size and frequency of bond purchases.
The Australian GDP q/q data (Forecast: -0.4%, Previous: 0.5%) data will be released tomorrow at 0930 (SGT).
Currently, AUD/USD is bouncing downwards from the key level of 0.68. Its next support zone is at 0.66800 and the next resistance zone is at 0.68500.
If no new measures are carried out by the RBA and that they express optimism in the reopening of the Australian economy, look for short-term buying opportunities of AUD/USD after it breaks above the key level of 0.68.
Yesterday, several Australian states eased social distancing restrictions measures. Also, the Australian government further increases recovery efforts with plans to offer renovation grants to homeowners and to spend another A$5.25 billion to extend a train route to an airport being constructed in west Sydney in consideration.
The Reserve Bank of Australia (RBA) will be announcing their interest rate decision later at 1330 (SGT).
It is expected that the central bank will be holding rate unchanged at the effective lower bound of 0.25%. It is also unlikely that new easing measures will be announced since the Australian economy has not been hit too badly by the COVID-19 pandemic. In fact, the RBA highlighted during the previous monetary policy meeting that the government bond markets have improved and the central bank has scaled back the size and frequency of bond purchases.
The Australian GDP q/q data (Forecast: -0.4%, Previous: 0.5%) data will be released tomorrow at 0930 (SGT).
Currently, AUD/USD is bouncing downwards from the key level of 0.68. Its next support zone is at 0.66800 and the next resistance zone is at 0.68500.
If no new measures are carried out by the RBA and that they express optimism in the reopening of the Australian economy, look for short-term buying opportunities of AUD/USD after it breaks above the key level of 0.68.