American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

AUD/USD and ASX 200 on edge ahead of the RBA rate decision

by admin July 6, 2025
July 6, 2025
AUD/USD and ASX 200 on edge ahead of the RBA rate decision

The AUD/USD exchange rate and the ASX 200 Index will be in the spotlight this week as the Reserve Bank of Australia (RBA) delivers its interest rate decision on Tuesday. 

The Australian dollar has been in a slow uptrend recently, and is now hovering near its highest point since November 6 last year. Similarly, the blue-chip ASX 200 Index has jumped to $8,600, a few points below the year-to-date high of $8,641.

RBA interest rate decision 

The main catalyst for the AUD/USD and the ASX 200 Index will be the upcoming RBA interest rate decision. Economists polled by Reuters expect that the bank will deliver the third interest rate cut of the cycle in this meeting.

If this happens, the bank will bring interest rates to 3.60% from 3.85%. Rates started the year at 4.35%. 

The RBA, like the Bank of England (BoE) and the Federal Reserve, have been more cautious during the current cycle. This is unlike the European Central Bank (ECB), which has adopted a more aggressive tone, having delivered nine rate cuts. 

A rate cut by the RBA will likely be bullish for the ASX 200 Index because it will make bonds more attractive. Data shows that the ten-year yield has dropped to 4.20%, down from the year-to-date high of 4.720%.

The RBA decision comes on the same week that Donald Trump’s trade war deadline ends. This deadline will likely have a minimal impact on Australia and the ASX 200 Index.

For one, it is likely that US tariffs on goods sent to the United States will remain at 10%. Additionally, Australia is a relatively small exporter to the US, with exports accounting for approximately 5% of its total exports.

Most notably, Trump has already reached a trade deal with China, Australia’s biggest trading partner. 

The other key catalyst for the ASX 200 and the AUD/USD pair will be the upcoming Federal Reserve minutes on Wednesday. These minutes often impact international assets because of the impact of US interest rates.

AUD/USD technical analysis

AUD/USD chart by TradingView

The daily chart shows that the AUD/USD exchange rate has been in a bull run in the past few months as the US dollar index crashed. It moved from a low of 0.5900 in April to a high of 0.6588. 

The pair has moved above the 61.8% Fibonacci Retracement level. Most importantly, it has formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) have crossed each other. 

Therefore, the pair will likely continue rising as bulls target the next key resistance level at 0.6720, the 78.20% retracement level. 

ASX 200 Index analysis

ASX 200 Index chart | Source: TradingView

Australian stocks have been in a strong uptrend in the past few months, moving from a low of $7,146 in April to the current $8,600. It has reached a crucial level, as it failed to move above it twice in February and June. 

The index has also formed a golden cross pattern, while the Relative Strength Index (RSI) and the MACD indicators have all pointed upwards. Therefore, it will likely have a strong bullish breakout, with the next target being at $9,000. 

However, there is a likelihood that the index will retreat as investors book profits after it hit a crucial resistance level. 

The post AUD/USD and ASX 200 on edge ahead of the RBA rate decision appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
USD/CAD forecast: here’s why the Canadian dollar is surging
next post
Top catalysts for the Dow Jones Index this week

Related Posts

Gold Price Forecast: Top Trends That Will Affect...

March 6, 2024

Marvel Discovery Acquires Strategic Ground In Elliot Lake,...

May 24, 2024

Blue Sky Uranium Acquires New Projects in Argentina

June 25, 2024

Many Peaks Minerals Ltd (ASX: MPK) – Trading...

March 29, 2024

Here’s why Nasdaq 100 index ETF like QQQ...

November 26, 2024

Buyer beware: Bond vigilantes may crash the S&P...

December 30, 2024

Forward Water Technologies Completes Non-Brokered Private Placement of...

May 25, 2024

S&P 500 Index: Time to sell the SPY...

May 5, 2025

Top crypto price predictions: VIRTUAL, Voxies, Fartcoin

May 1, 2025

Galloper Gold

March 2, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • India-UK sign historic free trade deal: here’s all you need to know

      July 24, 2025
    • Talen Energy surges 25% to ATH after strategic natural gas power plant acquisition

      July 20, 2025
    • US visa bans on Brazilian judges spark diplomatic rift, cloud economic ties

      July 20, 2025
    • Trump sues Murdoch and News Corp over Wall Street Journal’s Epstein report

      July 20, 2025
    • The new global demographic challenge: not too many, but too few

      July 20, 2025

    Categories

    • Business (3,484)
    • Investing (2,660)
    • Latest News (2,022)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved