AUD/USD Trending in a Hot Zone!

Fundamental Analysis

The Reserve Bank of Australia is expected to maintain the cash rate @ 0.25%, being pegged at this rate from March 2020. Recently, the central bank has sharply slowed the pace of its bond-buying, as fixed income markets began to stabilize, only purchasing government bonds on one occasion while keeping the curve control on three-year yields. Moreover, in June's RBA meeting, policymakers were more upbeat on the Australian economic outlook as COVID-19 new cases from April to June has strongly diminished. However, in the past 24 hours, the Australian state of Victoria had found 75 new cases, and the country's second-most populous city, Melbourne, recorded a 108 new cases, which is the worst increase of cases in more than 3 months. Consequently, Victoria's lock-downs have reset Australia's response to be put right back in place. Some other states are also extending their border closure measures which have reset Australia's response to the virus, a factor that will be watched for in tomorrow's RBA meeting.

Technical Analysis

• AUD on the verge of either a break-out or a fall-out @0.7000-0.7025 zone.
• A break above could test 0.7475-0.7525 resistance zone, otherwise a re-test for the support area @0.6750-0.6775

Major Economic Events

Disclaimer

The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.