Skip to content AUDUSD Rebounds as US Election Uncertainty Grows
On Monday, the Australian dollar rose to around $0.662, rebounding from its lowest point in nearly three months. This uptick occurred because the U.S. dollar weakened amid increasing uncertainty about the upcoming U.S. presidential election. Meanwhile, investors are preparing for the Federal Reserve’s next decision, where a modest 25 basis point rate cut is expected.
The AUD/USD 4-hour chart below demonstrates the price, support, and resistance levels.
Reserve Bank of Australia Likely to Hold Cash Rate at 4.35%
In Australia, the Reserve Bank is expected to keep the cash rate steady at 4.35% this week. This expectation arises because underlying inflation, measured by the trimmed mean, remains high.
The Melbourne Institute reported on Monday that its Monthly Inflation Gauge increased to 0.3% in October from 0.1% in September, reaching its highest level since July.
- Next read: GBPUSD Drops to $1.29 Amid Budget Concerns
Regarding employment data, the ANZ-Indeed Job Ads showed a slight rise of just 0.3% in October. This marks a significant slowdown from the 2.3% increase observed in September.
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