Shares of Australia are heading for a stronger start on Tuesday as metal prices are likely to rise amid political uncertainty in Guinea, with investors sidelined ahead of the central bank’s September policy meeting. Investors are waiting for the Reserve Bank of Australia’s (RBA) policy meeting; the sentiment seems somewhat tense as authorities struggled to control the delta variance despite the lockdowns.

Analysts have not yet decided whether the RBA will suspend its tapping plans at its September policy meeting. Investors took heart from the hope that the US would keep its interest rates low for a long time. At home, job advertisements slipped as corona virus locks spread from Sydney to Melbourne and Canberra in August, a drop that was small compared to the losses incurred in the first phase of the epidemic last year.

On the other hand Australian GDP is actually making the pair fly again because it is stronger than expected. This is very interesting as the Australian economy has been locked up for a while due to the government’s exaggeration against the virus. Everything was equal, which is a reflection of the Chinese economy, which seems to be struggling. It should be noted, however, that the pre-RBA caution and fears of a spike in the virus-led hospitalizations in Australia challenge the pair buyers. Amid these plays, the Commonwealth Bank of Australia (CBA) said, “The near-term outlook is bleak, as extended lockdowns in NSW and Victoria cripple economic activity.”

US and Canada brace for weekly opening after the Labour Day holiday on Monday. It’s worth noting that the US Treasury yields seem to react to Friday’s downbeat jobs report for August, weighing on the Fed’s tapering plan. U.S. report released last week showed that non-farm wage earners were lower than expected and paid attention to expectations that the central bank would announce tapping assets in September.

US dollar moves and risk appetite may delight Aussie traders ahead of the RBA decision. Although the markets are already pushing for a delayed taper on the weekly bond purchase by the RBA, any surprise will be overreacting. In addition, there are no new virus cases in Victoria and the confidence of the Reserve Bank of Australia (RBA) in the delay is also favorable for late AUD / USD buyers.

AUD/USD 4 Hour Chart:

Support: 0.7424 (S1), 0.7409 (S2), 0.7392 (S3).

Resistance: 0.7456 (R1), 0.7474 (R2), 0.7488 (R3).

Hopes from RBA favors Aussie whereas spread of new variant of covid depress it. We expect a mid-trend for AUD/USD.