Listen to the latest market mood for the AUDUSD pair.
The AUD should find support today after the RBA kept rates unchanged and maintained the 3yr yield target at 25bps as expected. The RBA had been seen as possibly surprising the market with a 10bps rate cut, but it resisted that move.
Risk sentiment has started the session positively after a string of positive data out of Europe and the US yesterday. The dollar Index fell back towards 93.50 yesterday as the stock gains spurred outflows from the USD.
Therefore, expect AUDUSD buyers from pullbacks.
We expect this trade to play out between now and the next 4-6 hours.
- If we see sharp falls in the equity markets that will invalidate this outlook.
- If we get negative news for COVID-19 that will also invalidate this outlook.