AUD/USD Trending in a Hot Zone!

Fundamental Analysis

The Reserve Bank of Australia is expected to maintain the cash rate @ 0.25%, being pegged at this rate from March 2020. Recently, the central bank has sharply slowed the pace of its bond-buying, as fixed income markets began to stabilize, only purchasing government bonds on one occasion while keeping the curve control on three-year yields. Moreover, in June's RBA meeting, policymakers were more upbeat on the Australian economic outlook as COVID-19 new cases from April to June has strongly diminished. However, in the past 24 hours, the Australian state of Victoria had found 75 new cases, and the country's second-most populous city, Melbourne, recorded a 108 new cases, which is the worst increase of cases in more than 3 months. Consequently, Victoria's lock-downs have reset Australia's response to be put right back in place. Some other states are also extending their border closure measures which have reset Australia's response to the virus, a factor that will be watched for in tomorrow's RBA meeting.

Technical Analysis

  • AUD on the verge of either a break-out or a fall-out @0.7000-0.7025 zone.
  • A break above could test 0.7475-0.7525 resistance zone, otherwise a re-test for the support area @0.6750-0.6775

Major Economic Events

GMT Country Event Expectation Previous



RBA Interest Rate Decision




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