Buying AUDUSD with 0.66200 target

This week, the Reserve Bank of Australia (RBA) is poised to keep its current interest rate unchanged, as a tight labor market and spiking inflation make further monetary easing unlikely. Economists are warning of a new potential surge in the Consumer Price Index, particularly in the services sector, and recent hikes in housing, food, and alcohol. 

The current median forecast anticipates a further reduction in borrowing costs in November, followed by an extended pause until the third quarter (Q3) of 2026. This marks a notable shift from previous predictions of two more rate cuts by early 2026. Embodying an unmistakably hawkish stance, the regulator believes the policy will remain on hold until May.

A longer pause could also lead to a greater divergence from the Federal Reserve (Fed), which lowered borrowing costs this month for the first time since December. According to market players, there's a strong chance the American central bank will implement two additional rate cuts by year-end. This policy contrast is occurring amid solid domestic data, which RBA Governor Michelle Bullock described as generally meeting or even slightly better than forecasts. During her parliamentary appearance last week, she noted that the labor market is near full employment, and the private sector is starting to respond to monetary stimulus. Assistant Governor Sarah Hunter reinforced this outlook, pointing to signals of a "cyclical upswing" in the economy.

For investors, such a policy gap would make Australian assets even more profitable, potentially drawing in foreign capital and strengthening the Aussie. In this context, a strategic approach would be to open positions on the AUDUSD pair at the 0.65970 support.

The ultimate recommendation is to buy AUDUSD from the 0.65970 level. Profits are taken at 0.66200. Stop loss is set at 0.65800. This trade goes against the prevailing downtrend and implies high risks.

Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.