Yesterday AUDUSD drew a bullish candlestick with rather long shadows on the top and bottom candle indicating the market is fluctuating. Price formed a high of 0.065412 and a low of 0.64717, open at 0.64955 and close at 0.65191.
Previously, AUDUSD price volatility showed the price falling at the low on August 5 at 0.63485 and drawing a Pin bar pattern indicating that in a bearish market, there was buyer pressure trying to take over the market direction.
At its meeting yesterday, the RBA still maintained interest rates at 4.35% for the seventh time today. The market seems not to respond much to the RBA interest rate as expected. Australia's still high inflation is the reason RBA Governor Bullock maintains high interest rates.
The RBA projections that inflation will not fall within the target range of 1-3% in the second quarter and forecasts an increase to 3.8%. The potentially restrictive RBA may support AUDUSD in the long term compared to the Fed which may cut interest rates at the end of the year and is expected in September.
Furthermore, the RBA Governor saw a decline in shares due to a weak reaction to the US employment report on Friday and fears of a recession in the US. The Australian dollar staggered, falling up to 2.4%, and tried to recover on Tuesday.
Today there is no high-impact news in the economic calendar, but investors may focus on RBA Assistant Governor (Economic) Sarah Hunter to see potential hawkishness or dovishness. New Zealand's high-impact news on employment and unemployment data may have an impact on NZD despite its slight correlation with the Australian dollar.
Previously, AUDUSD price volatility showed the price falling at the low on August 5 at 0.63485 and drawing a Pin bar pattern indicating that in a bearish market, there was buyer pressure trying to take over the market direction.
At its meeting yesterday, the RBA still maintained interest rates at 4.35% for the seventh time today. The market seems not to respond much to the RBA interest rate as expected. Australia's still high inflation is the reason RBA Governor Bullock maintains high interest rates.
The RBA projections that inflation will not fall within the target range of 1-3% in the second quarter and forecasts an increase to 3.8%. The potentially restrictive RBA may support AUDUSD in the long term compared to the Fed which may cut interest rates at the end of the year and is expected in September.
Furthermore, the RBA Governor saw a decline in shares due to a weak reaction to the US employment report on Friday and fears of a recession in the US. The Australian dollar staggered, falling up to 2.4%, and tried to recover on Tuesday.
Today there is no high-impact news in the economic calendar, but investors may focus on RBA Assistant Governor (Economic) Sarah Hunter to see potential hawkishness or dovishness. New Zealand's high-impact news on employment and unemployment data may have an impact on NZD despite its slight correlation with the Australian dollar.
