The AUD/USD pair trades with modest intraday gains at the end of the American session in the 0.6420 price zone, helped by Wall Street’s recovery from intraday lows. The Aussie fell at the beginning of the day, undermined by the prevalent risk-averse sentiment and softer than expected Australian inflation. The TD Securities Inflation estimate for April resulted in -0.1% MoM and at 1.2% YoY, below its previous estimates. On a positive note, Building Permits in the country beat market’s expectations down by 4.0% in March vs the -15% forecast.
The Reserve Bank of Australia is having a monetary policy meeting today – Tuesday. Policymakers are expected to live the rates at a record low of 0.25% (The Reserve Bank of Australia left the cash rate unchanged at a record low of 0.25% during its May meeting, as the country continued to mitigate the economic downturn from the COVID-19 pandemic. ), although investors will be looking for a possible adjustment to the central bank’s assets purchase program. More relevant, investors will scrutinize Lowe’s words about the economic situation of the country and estimates of growth and unemployment.
AUD/USD SHORT (Sell)
ENTER AT: 0.64520