Yesterday the AUDUSD currency pair drew a bullish candlestick with a short shadow at the top of the candle indicating the strengthening of the Australian dollar against the US dollar. Price formed a high of 0.68537, a low of 0.67960, close at 0.69374.
The performance of the Australian dollar strengthened ahead of the RBA making its interest rate policy decision today. Analysts forecast that the RBA will keep interest rates unchanged at 4.35% with inflationary pressure remaining as expected and job growth optimistic.
Therefore, investors will pay more attention to RBA officials' statements to get clues about future policy by looking at hawkish or dovish statements.
On the other hand, the Fed is predicted to make cuts in November. According to the CME group's FedWatch tool, the forecast for a 50 basis point cut is 49.5% and the forecast for a 25 basis point cut is 50.5%. Meanwhile, in a Reuters poll, 100 economists predicted the Fed would cut interest rates by 25 basis points.
On the other hand, US manufacturing PMI data showed data of 47.0 lower than the predicted 48.6 from the previous revision of 47.9. Meanwhile, the services PMI showed actual data of 55.4, higher than the forecast of 55.3 but still below the previous revision of 55.7.
Today, apart from the market highlighting the RBA interest rate, it is also paying attention to The Conference Board (CB), which assesses consumer financial confidence which is forecast to rise to 103.9 from the previous 103.3.
View attachment 7597
The performance of the Australian dollar strengthened ahead of the RBA making its interest rate policy decision today. Analysts forecast that the RBA will keep interest rates unchanged at 4.35% with inflationary pressure remaining as expected and job growth optimistic.
Therefore, investors will pay more attention to RBA officials' statements to get clues about future policy by looking at hawkish or dovish statements.
On the other hand, the Fed is predicted to make cuts in November. According to the CME group's FedWatch tool, the forecast for a 50 basis point cut is 49.5% and the forecast for a 25 basis point cut is 50.5%. Meanwhile, in a Reuters poll, 100 economists predicted the Fed would cut interest rates by 25 basis points.
On the other hand, US manufacturing PMI data showed data of 47.0 lower than the predicted 48.6 from the previous revision of 47.9. Meanwhile, the services PMI showed actual data of 55.4, higher than the forecast of 55.3 but still below the previous revision of 55.7.
Today, apart from the market highlighting the RBA interest rate, it is also paying attention to The Conference Board (CB), which assesses consumer financial confidence which is forecast to rise to 103.9 from the previous 103.3.
View attachment 7597
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