The AUDUSD is holding steady ahead of the Reserve Bank of Australia (RBA) interest rate decision. The pair is also reacting to the impressive China manufacturing PMI data. It is trading at 0.7387, which is the highest it has been since September.
The RBA started its monetary policy meeting today and is scheduled to deliver its decision tomorrow at 03:30 GMT. Economists polled by Reuters expect that the bank will leave interest rate unchanged at 0.10%. This is after the bank slashed rates in its November meeting.
The meeting comes at a time when the number of new Covid cases in Australia has declined sharply. Similarly, it comes as the world prepares for the rollout of a vaccine. The country has already placed orders for shots by Novavax, AstraZeneca, Pfizer, and the University of Queensland.
Also, the RBA decision will come a day after China released strong manufacturing PMI numbers. According to the statistics bureau, the manufacturing and non-manufacturing PMIs climbed for nine months straight to 52.1 and 56.4, respectively. The composite PMI rose to 55.7. These are important numbers for Australia because China is its biggest trading partner.
AUDUSD outlook ahead of RBA decision
On the daily chart, we see that the AUDUSD price is a few pips below this year’s high of 0.7411. It has also been in an upward trend after forming a double bottom pattern at 0.7000 on November 2.
Also, the price is above the 25-day moving average while the Relative Strength Index (RSI) has continued to rise. Therefore, the pair will likely break-out above 0.7411 and continue rising, possibly to 0.7500.
Don’t miss a beat! Follow us on Telegram and Twitter.
AUD/USD technical chart
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Crispus on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.