The Australian Dollar (AUD) extended its recovery north Monday against the US Dollar (USD) reaching 0.6370 into early Tuesday a fresh yearly high in the cross. A combination of factors has contributed to the upbeat AUD of late including sentiment around a Ukraine/Russia peace deal and softer US Retail Sales. All eyes are on today’s RBA with predictions of a 25-point cut to 4.10%, however there are mounting risks the central bank delivers a hawkish surprise amid a tighter labour market and inflated CPI. Signalling a shallow rate cut cycle in 2025 could also be on the cards. Setback for the AUD should be well supported.
Current Level: 0.6352
Resistance: 0.6400
Support: 0.6170
Last Weeks Range: 0.6234- 0.6366