AUD/USD Falls Below 0.6620 In Advance Of US Services PMI Data

A modest increase was observed in the AUD/USD pair during the early Asian session on Tuesday. Ahead of Tuesday's policy meeting of the Reserve Bank of Australia (RBA), investors anticipate no rate adjustments. The AUD/USD pair retraces its gains above the 0.6600 level as the USD gains ground against its competitors. Presently trading near 0.6618, the pair is up 0.01% for the day.

FOMC Chair Powell stated last week that, if necessary, the Federal Reserve would not hesitate to raise interest rates once more. The October JOLTS report, which is expected to decrease employment by 200,000, is due on Tuesday. In the third quarter of 2024, the market expects the FOMC to initiate its reducing cycle. US factory orders for October decreased 3.6% month-over-month on Monday, following a 2.3% increase in the previous reading.

Conversely, investors will closely monitor the RBA meeting. The RBA is anticipated to maintain its cash rate at 4.35% following last month's 25 basis point (bps) increase. The November Caixin Service PMI for China is forthcoming and is anticipated to rebound from 50.4 to 50.8. The data, which surpassed expectations, could potentially strengthen the Australian Dollar (AUD), a proxy for China.

As market participants await the RBA's interest rate decision, the US Services PMI will also be scrutinised. Traders will identify trading opportunities in the AUD/USD pair by analysing the data.