News and Market Analysis

AUD/USD rally ahead of RBA rate decision

We have seen a slight recover in the pair bouncing off of it’s one week low of 0.7075 to 0.7132. However USD strengthening on the back of Monday’s ISM Manufacturing PMI figures coming in better that expected, injecting some confidence that the US economy can withstand anything the virus throw at it. Whilst positive data in Australian PMI numbers didn’t do much for Aussie as Coronavirus outbreak in Melbourne continue to plague currency. Victorian Premier Daniel Andrews, enforcing further business closures across all industries has not helped sentiment around dollar.

Traders will keep an eye on the RBA announcement today and even though they are not expecting a change in the cash rate, all this negative virus talk could continue to push the Australian dollar down further.