AUDUSD is hovering near 0.69800 right now. What could push it higher? Actually, there are two things: the Reserve Bank of Australia's hawkish stance and a potentially softer US dollar after the American regulator's meeting. On top of that, inflation down under is still running hot—and this could give the Aussie a boost and set the pair up for a recovery.
Investors are closely watching to see what the RBA will decide on November 2–3. Last time around, the central bank lifted interest rates to 4.60% in a bid to fight inflation. The quarterly Consumer Price Index (CPI) data, due October 28, will carry just as much weight. In August, the annual reading climbed to 4.0%, overshooting the regulator's 2%–3% target range. If the new figures confirm that price pressures are still alive and kicking, the RBA may stay hawkish and hint at more hikes to come. This would make Australian assets more attractive and give AUDUSD a lift.
Over in the United States, the big event on the calendar is the Fed meeting on October 27–28. In September, annual inflation rose to 3.7%, leaving the central bank little room to ease. However, keeping rates on hold, with cautious guidance on what comes next, could drag the greenback lower. If the American regulator fails to provide new indications of imminent monetary tightening, traders may start rethinking their dollar bets, which could open the door for AUDUSD to climb. On the technical front, the pair has bounced off the 0.69000 support and begun to move up, with 0.71000 as the potential target.
The ultimate recommendation is to buy AUDUSD at the current price (0.69800), aiming to reach 0.71000 within one month. To protect your position from adverse market movements, place a Stop Loss order at 0.69000.
This content is for informational purposes only and is not intended to be investing advice.
