The AUD/USD pair maintained its upward trajectory as expectations for a more hawkish Reserve Bank of Australia increased. The asset has experienced an upward trend for ten consecutive days, achieving a peak of 0.6600, marking its highest point since October 28 of this year. Market participants anticipate that the RBA will adopt a relatively hawkish stance in the upcoming interest rate meeting following a series of macroeconomic data releases. A report published last week indicated that the nation’s composite and services PMIs exceeded expectations. The composite PMI increased from 52.1 in October to 52.6 in November, and the services metric improved from 52.5 to 52.8. A PMI figure of 50 and above indicates that the economy is performing positively. This report was released a week following Australia’s publication of robust inflation figures that exceeded expectations. The headline, trimmed, and weighted mean inflation figures exceeded the RBA’s target of 2.0%.
Consequently, there exists a potential for the bank to increase interest rates in the upcoming meeting. It may also opt to keep them steady at 3.60%, while sustaining a hawkish stance. The assertive stance of the RBA aligns with the anticipated more accommodative approach of the Fed, which is projected to lower rates in the upcoming week. The likelihood of a rate cut increased following the release of the ADP’s weekly jobs report. The data indicated that the private sector experienced a decline of 32,000 jobs last week, following an increase of 47,000 the previous week. Today, there will be a lack of significant macroeconomic data releases from both the United States and Australia. Consequently, market participants will persist in responding to the latest figures and their potential impact on policy decisions.
The AUD/USD pair maintained its upward momentum as expectations of a divergence between the Federal Reserve and the Reserve Bank of Australia increased. The value has increased from a low of 0.6420 to the current level of 0.6600. The pair has surpassed the 50-day and 100-day Exponential Moving Averages. The Supertrend indicator is on the verge of transitioning from red to green, indicating a bullish signal.
Consequently, the prevailing expectation is that it will continue to ascend as bullish traders aim for the significant resistance level at 0.6700. A decline beneath the support level of 0.6500 will negate the optimistic perspective.