AUD/USD mixed stunted moves after RBA minutes

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    AUD/USD bulls have so far managed to keep the lead, despite the minutes suggesting that further easing could be on the cards on the back of low inflation. However, the main take away is that there is still no need to act and that board members see reasonable prospects for continued economic growth.

    RBA minutes: Low inflation provides scope to ease further

    The RBA minutes
    explained that the past fall in the Aussie was helping to re-balance the economy to non mining activity.

    Therefore, the level will be keenly monitored by the RBA and much more upside could test the Central Bank and provoke intervention. The ECB and Fed are going to be of keen interest in this respect, given last week's reaction to the ECB outcome through the Aussie.

    AUD/USD levels

    The 0.760 handle is a keen level of interest and it might be expected to be a tough level of resistance given it was the key supporting area a year ago back in Feb 2015. 0.7531 remains as the pivot for today and we remain below this level, despite the highs of 0.7528 post the minutes with the 50 sma in the 1hr chart coming in as resistance at 0.7527.
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