20 May 2025,06:30
Daily Market Analysis
20 May 2025, 06:30
Key Takeaways:
*The Aussie stood firm ahead of the RBA interest rate decision on Hawkish expectation.
*China rate cutting help to bolster the Aussie dollar’s strength.
The Australian dollar remained resilient against its G7 peers in recent sessions, underpinned by robust domestic economic data. A stronger-than-expected employment report — featuring upbeat employment change figures and a lower-than-anticipated unemployment rate — bolstered investor confidence, reinforcing expectations that the Reserve Bank of Australia may adopt a more hawkish tone.
Markets are currently pricing in a 25-basis-point rate cut at today’s RBA meeting. However, any deviation from this expectation, particularly a surprise hold or hawkish policy language, could trigger a sharp appreciation in the Aussie.
In addition, sentiment around the Australian dollar has been buoyed by policy developments in China. As a key proxy for Chinese economic momentum, the AUD stands to benefit from the People’s Bank of China’s recent decision to lower borrowing costs — a move seen as part of broader efforts to stimulate growth in the world’s second-largest economy.
The AUD/USD pair is consolidating within an asymmetric triangle pattern, having traded sideways between the 0.6500 and 0.6365 levels over the past two weeks. A decisive break above the triangle’s upper boundary would signal a potential bullish breakout, suggesting further upside for the pair.
Momentum indicators paint a cautiously optimistic picture. While the MACD remains near the zero line — reflecting a neutral tone — the RSI has been climbing steadily, pointing to growing bullish momentum. Should this trend persist, the Aussie may gain further ground against the greenback in the near term.
Resistance levels: 0.6505, 0.6575
Support levels: 0.6420, 0.6360
Step into the world of trading with confidence today. Open a free PU Prime live CFD trading account now to experience real-time market action, or refine your strategies risk-free with our demo account.
This content is for educational and informational purposes only and should not be considered investment advice, a personal recommendation, or an offer to buy or sell any financial instruments.
This material has been prepared without considering any individual investment objectives, financial situations. Any references to past performance of a financial instrument, index, or investment product are not indicative of future results.
PU Prime makes no representation as to the accuracy or completeness of this content and accepts no liability for any loss or damage arising from reliance on the information provided. Trading involves risk, and you should carefully consider your investment objectives and risk tolerance before making any trading decisions. Never invest more than you can afford to lose.
Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.
Trading Platforms
Learn
About PU Prime
Corporate
Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.
Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.
By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.
Thank You for Your Acknowledgement!
Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.
Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.
Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.
Thank You for Your Acknowledgement!
