AUD received some support after the RBA’s expected rate hike.
Can the bulls extend AUD’s upswing long enough to bust AUD/USD above an established range?
Before moving on, ICYMI, yesterday’s watchlist looked at a potential 500-pip move in case GBP/USD busts out of its triangle consolidation. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Finance Ministry: Japan spent record $42.8B in October interventions to prop up yen
Australia’s dwelling prices fall at a slower pace (from -1.4% to -1.1%) in October
NZ building permits recover by 3.8% in September after 1.6% decline in August
Japan’s manufacturing PMI down from 50.8 to 50.7 in October, the softest pace since January 2021
China Caixin manufacturing PMI improved from September’s 48.1 to 49.2 in October
RBA raised cash rates by 25 bps to 2.85% as expected in November
RBA sees inflation peaking at 8% from previous forecasts of 7.75%
Dollar eases on improved risk sentiment before Fed; Aussie pares gains after RBA
Oil prices rise as weaker dollar offsets China COVID-19 concerns
Switzerland October manufacturing PMI clocks in a slower 54.9 vs. 56.0 reading expected
UK house prices fall after ‘mini-budget’ turmoil – Nationwide
Canada’s manufacturing PMI at 1:30 pm GMT
US ISM manufacturing PMI at 2:00 pm GMT
US JOLTS job openings at 2:00 pm GMT
RBNZ’s financial stability report at 8:00 pm GMT
AU AIG manufacturing index at 9:30 pm GMT
NZ quarterly labor market numbers at 9:45 pm GMT
BOC Gov. Macklem to give a speech at 10:45 pm GMT
AU building approvals at 12:30 am GMT (Nov 2)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: AUD/USD
AUD/USD 4-hour Forex Chart
In case you missed it, the Aussie found support from Asian session traders after the Reserve Bank of Australia (RBA) raised its interest rates by 25 basis points as markets were expecting.
AUD/USD, which saw its downtrend take a chill pill in October, bounced from a mid-range level in the 4-hour time frame.
The pair is now trading closer to the .6450 zone that lines up with the chart’s 200 SMA.
Can AUD find enough buyers to test (and maybe break) the .6500 range resistance?
Uncle Sam will be printing its ISM manufacturing PMI later today.
If traders extend their risk-friendly trading theme, then AUD/USD could pop up to the .6500 previous resistance level.
On the other hand, a USD-friendly trading session could drag AUD/USD back to the mid-range levels closer to .6370 zone.