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  • The pair reversed an early dip in absence of any fresh dovish signals by RBA on Tuesday.
  • Renewed weakness in the US bond yields capped the USD and remained supportive.
  • Traders look forward to the US ISM manufacturing PMI for some meaningful impetus.

The AUD/USD pair built on its goodish intraday up-move from near one-month lows and is currently placed at session tops, around the 0.6725-30 region.
The pair extended last week’s rejection slide from the 0.6800 neighbourhood and slipped below the 0.6700 handle, back closer to multi-year lows set on August 7, albeit managed to attract some buying interest at lower levels after the latest RBA monetary policy update.

RBA maintains status-quo

At its September meeting held this Tuesday, the RBA left its cash rate unchanged to 1.0% and refrained from providing any clear signs of further rate cuts. The RBA also sounded optimistic about employment and economic growth expectations, which eventually provided a minor lift to the Australian Dollar.
This against the backdrop of renewed hopes of a potential US-China trade deal further underpinned the China-proxy Aussie and remained supportive of the up-move, through the prevailing bullish sentiment around the US Dollar might keep a lid on any strong follow-through.
Meanwhile, a sharp intraday turnaround in the US Treasury bond yields – triggered by a slight deterioration in the global risk sentiment – failed to provide any additional boost to the greenback ahead of Tuesday’s important release of the US ISM manufacturing PMI.

Technical levels to watch