RBA raises interest rates - EBC Daily Snapshot
2023-11-07
Summary:
The dollar rose as other currencies' rally faded; the Australian dollar dipped as the RBA raised rates but suggested a nearing end to hikes.
EBC Forex Snapshot
7 Nov 2023
The dollar advanced on Tuesday as rally in other major currencies faded, while the Australian dollar dipped after the RBA raised rates but tweaked its outlook to signal that rate hikes are nearing an end.
The RBA ended its four months of wait-and-see mode and said whether a move would be necessary would depend on following data instead of further tightening might be needed.
Mixed trade data from China also dented risk sentiment. The Aussie which hit a three-month peak on Monday was set for its worst daily gain in a month.
Minneapolis Fed President Neel Kashkari said the Fed could have more work ahead of it to control inflation though traders see more tightening by year-end as very unlikely.
| Citi (as of 30 Oct) | HSBC (as of 6 Nov) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0448 | 1.0737 | 1.0581 | 1.0812 |
| GBP/USD | 1.2037 | 1.2337 | 1.2165 | 1.2486 |
| USD/CHF | 0.8745 | 0.9338 | 0.8879 | 0.9105 |
| AUD/USD | 0.6253 | 0.6445 | 0.6346 | 0.6597 |
| USD/CAD | 1.3569 | 1.3862 | 1.3542 | 1.3837 |
| USD/JPY | 147.43 | 151.95 | 148.19 | 151.14 |
The green numbers in the table indicate an increase in data, the red numbers indicate a decrease in data, and the black numbers indicate that the data remains unchanged.
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