RBA’s little dovish-than-expected determination supported nan Aussie earlier today!
As expected, nan Reserve Bank of Australia (RBA) decided to support its liking rates astatine 4.35% successful February.
The cardinal slope besides acknowledged that ostentation has eased, but was still uncertain astir nan gait of its return to RBA’s 2% – 3% target range.
What caught traders’ attraction was that Governor Bullock and her squad didn’t driblet nan imaginable of early liking complaint hikes, saying that “further summation successful liking rates cannot beryllium ruled out.” If you recall, cardinal banks for illustration nan Fed and nan Bank of England (BOE) person joined nan doves’ broadside pinch their liking complaint trim biases.
Remember that directional biases and volatility conditions successful marketplace value are typically driven by fundamentals. If you haven’t yet done your fundie homework connected nan Australian and nan U.S. dollars, past it’s clip to cheque retired nan economical almanac and enactment updated connected regular basal news!
How precocious tin AUD/USD alert earlier nan bears measurement backmost in?
AUD/USD recovered support from nan S1 (.6470) Pivot Point statement and it looks fresh to retest nan .6550 psychological handle. As you tin see, nan area besides lines up pinch a erstwhile support, nan Pivot Point (.6550) area, and a inclination statement guidance that hasn’t been surgery since nan commencement of nan year.
A rejection astir nan erstwhile inflection constituent could tie successful AUD/USD sellers and up nan likelihood of nan brace dropping backmost to its intraweek lows. Australia won’t beryllium printing immoderate much economical reports coming but marketplace themes aliases headlines that whitethorn summation USD request could put caller play lows connected nan array for AUD/USD.
Of course, we’re not ruling retired nan anticipation of AUD extending its upswing against USD.
If AUD bulls prolong their momentum, aliases if nan adjacent trading sessions‘ headlines favour risk-taking, past AUD/USD whitethorn get capable push to retest (and possibly moreover break) nan inclination statement guidance that we’re eyeing.
The .6600 – .6650 area whitethorn pull profit-takers if we do spot sustained AUD/USD request successful nan adjacent mates of days.
What do you think? Which measurement will AUD/USD go?