Current trend

The AUD/USD pair is correcting upwards around 0.6860 amid the decision of the Reserve Bank of Australia (RBA) officials to maintain the current monetary policy: the key rate remained at 4.35%, and the rate on balances of funds for currency exchange at 4.25%.

In the accompanying statement, the regulator’s representatives note that, despite significant progress in the fight against inflation, the Q2 core consumer price index remained around 3.9%, above the target range of 2.0–3.0%. The indicator may continue to weaken due to federal and state aid programs but will not reach the required levels before 2026. Since inflation is the key issue for the RBA, there will probably be no changes in monetary policy before then, and the interest rate will remain at 4.35%.

The American dollar is trading in a downtrend near the annual low at 100.40 in USDX under pressure from September business activity data. The manufacturing PMI sector fell from 47.9 points to 47.0 points, the services PMI from 55.7 points to 55.4 points, so, the S&P Global composite PMI fell from 54.6 points to 54.4 points.

Support and resistance

On the daily chart, the trading instrument is correcting, approaching the resistance line of the channel with dynamic boundaries of 0.6900–0.6550.

Technical indicators strengthen the buy signal: fast EMAs on the Alligator indicator reversed and are moving away from the signal line, expanding the range of fluctuations, and the AO histogram is rising in the buy zone.

Resistance levels: 0.6880, 0.6990.

Support levels: 0.6830, 0.6690.

Trading tips

Long positions may be opened after the price rises and consolidates above 0.6880, with the target at 0.6990. Stop loss is 0.6850. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 0.6830, with the target at 0.6690. Stop loss is 0.6880.