AUDUSD Stall at 0.65 As Minutes Show the RBA

AUDUSD tumbled 5 cents lower falling below 0.65, but reversed higher yesterday and reclaimed that level, as risk sentiment improved on Chinese market recovery.

The “Trump trade” unfolded as anticipated, with the US dollar and stock markets strengthening while risk-sensitive currencies like the AUD faced downward pressure. The S&P 500 surged past 6,100 points, reflecting bullish momentum. In this context, the AUD/USD pair came under sustained pressure, hitting a low of 0.6440 late last week.

But signs of reversal emerged as US stock markets experienced a notable pullback toward the end of last week. However, risk sentiment rebounded strongly today, lifting US and Asian stock markets and providing some support to the commodity-linked Australian dollar.

AUD/USD Chart H4 – Stabilizing Above 0.65

Besides that, RBA Governor Michele Bullock contributed to the AUD’s recovery by emphasizing the central bank’s commitment to keeping interest rates at restrictive levels until inflation is under control. Despite her assurances, the impact was somewhat muted by disappointing Australian labor market data. Additionally, the Reserve Bank of Australia released its meeting minutes last night, shedding light on its policy outlook and decision-making processes.

Reserve Bank of Australia November Meeting Minutes

AUD/USD Live Chart