Next up is Australian inflation

AUD/USD Current Price: 0.6878

• The RBA left rates unchanged, as expected, with Aussie inflation to follow.
• Disappointing US data fueled speculation of another 50 bps Fed rate cut.
• AUD/USD maintains positive tone near a new 2024 high of 0.6883.

AUD/USD touched 0.6868 during Asian trading hours following the Reserve Bank of Australia’s (RBA) monetary policy decision, later breaking above the US session level to hit a new 2024 high of 0.6883 .

As widely anticipated, board members kept the official cash rate (OCR) unchanged at 4.35%, a level set in November 2023. RBA Governor Michele Bullock then held a press conference, repeating -and the well-known request message. Bullocks said rates will remain on hold for now, adding that the Board does not see rate cuts in the near term because recent data has not “significantly affected” the policy outlook. The hawkish bias was no surprise to investors, and despite the general optimism, the pair quickly retreated.

Meanwhile, the People’s Bank of China (PBoC) announced a series of measures to support the economy. On the one hand, the PBoC announced that it will cut the reserve requirement ratio (RRR) by 50 basis points (bps) in the short term, as well as cut the seven-day repo rate by 0.2%, without offering more details. on the date. In addition, the central bank highlighted plans to support the real estate market, which include reducing mortgage interest rates.

AUD/USD returned north following warm data from the United States (US), which fueled speculation that the Federal Reserve (Fed) may cut interest rates by 50 basis points (bps) when it meets in November. Early Wednesday, Australia will release August’s monthly consumer price index, estimated at 2.8 percent after July’s 3.5 percent.

AUD/USD Short-Term Technical Outlook

The daily chart for AUD/USD is showing strong upward momentum, supporting higher highs. Technical indicators have lost some of their bullish power but continue to head higher near oversold readings. At the same time, the pair advanced well above bullish moving averages, with the 20 Simple Moving Average (SMA) more than 100 pips below the current level and well above the longest.

In the short-term, and on the 4-hour chart, risk is leaning to the upside, although momentum has eased. Technical indicators pulled back modestly from near overbought values, heading marginally lower, not enough to anticipate another move south. At the same time, a bullish 20 SMA continues to attract intraday buyers, now providing dynamic support around 0.6830.

Support levels: 0.6830 0.6775 0.6730

Resistance levels: 0.6910 0.6945 0.6980