- RBA maintained the status-quo and helped regain some positive traction.
- US-China trade optimism/subdued USD demand remained supportive.
- Traders now sit up for the American ISM PMI for a few short-term impetuses.
The AUD/USD pair built on its post-RBA intraday positive move, with bulls initiating a fresh plan to rely on the momentum further far beyond 0.6900 handles. Following the previous session’s pullback from the 0.6925-30 supply zone, the pair were able to catch some fresh bids on Tuesday, later on, Reserve Bank of Australia’s (RBA) chose to maintain the status quo and maintain rates of interest unchanged at its November meeting. A combination of factors remains supportive. The decision was on expected lines, although the central bank’s hawkish outlook ended up being one of the critical issues that provided a goodish lift to the Aussie. The central bank’s base scenario is for inflation to increase gradually and growth to increase to around 3% in 2021. Against the backdrop of renewed optimism over the possible US-China trade deal, absent dovish signals out of your RBA extended some support to the China-proxy Australian Dollar. They helped the pair to regain some positive traction through the Asian session on Tuesday. The American Commerce Secretary Wilbur Ross on Sunday stated that the licenses for American companies to export certain technology goods to China’s Huawei could be issued very shortly and added towards the recent indications that the trade deal could be signed later this month. The uptick was further backed up by a subdued American dollar price action. However, some follow-through pickup in the united states Treasury bond yields can help revive the USD demand and cap gains for the major, which makes it prudent to anticipate a sustained move past the mentioned support zone. Moving ahead, Tuesday’s US economic docket – highlighting the discharge of US ISM non-manufacturing PMI – at the moment be considered for many short-term trading impetuses later during the early North-American session.