Audusd Trades Higher With Focus On Rba

 Audusd Trades Higher With Focus On Rba

AUD/USD Trades Beyond 0.65 With Focus On RBA

During Monday's session, the Aussie pair managed to float above the 0.6500 support level as the US Dollar struggled. The DXY index is also experiencing one of the worst selling pressures that was only seen a few months ago.

For now, the DXY is trading near 103.80 with a downward bias, which suggests that more downside in AUD/USD is highly probable. At the same time, the T-Bond yields have also weakened as of late, which will also provide support to the AUD/USD pair.

The AUD/USD can be seen trading near 0.6513, which is pretty much close to the opening price of this week. But given this backdrop, the chances of more upside this week are very high.

US Housing Sector Shows Improvement

On Friday, the October's building permits & housing starts data from the USA was above the forecasts. In particular, the housing starts (USA) showed a 1.9% increase on a m/m basis and was recorded at 1.372 million. On the other hand, the building permits (USA) also jumped to 1.487 million with a +1.1% change.

So, if we look at this data from the US housing sector, it suggests a healthy upward trend in the residential sector. Since the real estate sector is linked with so many economic sectors, that's a good sign for the US economy.

Additionally, the recent FOMC minutes have also shown that the inflation reading is improving. At the same time, it shows that the impact of increased bond yields has caused the Fed to not raise the rates at the meeting.

On the Australian side, the RBA's governor expressed his views about how inflation is showing a downward trend. However, they added that the target of 2-3% inflation will only be achieved by the 2025's end.

RBA had a all time 12 year interest rate of 4.35%. RBA prices may rally in 2024.

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