Aussie Falls Despite Hawkish Shift by the RBA

RBA Fails to Match Market Expectations, NZ Jobs Data on the Agenda

The US dollar traded mixed against the other major currencies on Monday and during the Asian session Tuesday. It lost ground against CHF, JPY, and the EUR, while it eked out some gains versus AUD and GBP. The greenback was found relatively unchanged against NZD and CAD.

AUD/USD — Technical Outlook

AUD/USD fell sharply on Monday, following the RBA decision, breaking below the upside support line drawn from the low of September 29th. In our view, this has discarded the bullish case, but it has yet to confirm a bearish reversal signal. Therefore, we will stay sidelined for now.

AUD/NZD — Technical Outlook

AUD/NZD also tumbled after the RBA policy decision, and is now hovering slightly above the 1.0415/24 key support zone, marked by the lows of October 21st and 19th, respectively. Although the overnight slide suggests that the corrective wave between October 21st and 29th is now over, we prefer to wait for a dip below the key support zone of 1.0415/24 before we get confident on larger declines.

As for the Rest of Today’s Events

We already got Switzerland’s CPI, but as it is the case most of the times, the franc barely responded to this report. In a while, we get Eurozone’s final manufacturing PMI for October, which is once again expected to confirm its preliminary estimate. With regards to the energy market, we have the API weekly report on crude oil inventories, for which no forecast is available.

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