AUDUSD Breaks Above the Range, RBA in No Rush to Cut Rates

AUDUSD has shown a strong recovery in August, after dropping 4.5 cents in July and reaching new 2024 lows of 0.6349. Last week, after regaining support above the 0.6600 mark and surpassing the 100-day SMA, the AUD/USD pair entered another consolidation phase. As the new week began, buyers were active again, pushing the pair beyond the range’s upper boundary, indicated by the 200-day SMA falling below 0.67. This move has pushed the pair back into bullish territory, now trading above the range’s peak, however, to reach the July high of 0.68, the pair still needs to gain about 1 cent.

China’s efforts to stabilize its economy, which has faced challenges throughout 2024, have contributed to this upward trend for AUD/USD . Despite signs of economic instability, the Chinese government has been implementing policies to support the economy, some of which were announced over the past weekend. These measures could provide additional support for commodity-linked currencies like the AUD. Yesterday, this potential was recognized, and by the end of the day, the breakout occurred.

AUD/USD Chart Daily – The  200 SMA Has Been Broken

The Reserve Bank of Australia (RBA) and the Federal Reserve (FED) remain the two main central banks that have not yet begun easing monetary policy. While the FED is preparing markets for a potential rate cut in September, the RBA has not signaled any intentions and has not held any board discussions about0inutes from the latest RBA meeting were released, offering further insights into their stance.

Meeting Minutes from the Reserve Bank of Australia (RBA)

AUD/USD Live Chart