AUD/USD edges higher toward 0.7750 in choppy day
- AUD/USD is trading in the positive territory on Monday.
- US Dollar Index fluctuates in a very tight range at the start of the week.
- Focus shifts to Reserve Bank of Australia's (RBA) policy announcements.
The AUD/USD pair registered small losses last week but managed to stage a rebound on Monday. As of writing, the pair was rising 0.32% on a daily basis at 0.7738.
Nevertheless, with the trading conditions remaining thin due to the Memorial Day holiday in the US, AUD/USD is likely to spend the rest of the day in a tight range. Reflecting the choppy market action, the US Dollar Index is moving sideways around 90.00.
Focus shifts to RBA meeting
Earlier in the day, the data from Australia showed that the Private Sector Credit grew by 1.3% on a yearly basis in April. This reading came in slightly higher than the previous month's print of 1% but failed to trigger a noticeable market reaction. Meanwhile, the China Federation of Logistics and Purchasing (CFLP) reported that the Non-Manufacturing PMI improved to 55.2 in May from 54.9 in April.
On Tuesday, the Reserve Bank of Australia (RBA) will announce its Interest Rate Decision and release the Rate Statement. Previewing this event, “we continue to expect the cash rate to remain unchanged until 2024 and expect a full AUD100bn extension of quantitative easing (QE) beyond the second round," said Lee Sue Ann, Economist at UOB Group.
On a similar note, Bloomberg reported that the RBA is expected to keep its policy settings unchanged.
Technical levels to watch for