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AUD/USD rebounds towards 100-DMA on RBA’s status quo

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The AUD/USD pair found fresh bids near daily lows and swung back higher following the RBA’s rates on-hold monetary policy decision.

    AUD/USD re-takes 100-DMA at 0.7138

    Currently, the AUD/USD pair trades 0.20% lower at 0.7128, having printed post-RBA highs at 0.7131. The AUD bulls breathed a sigh of relief and pushed the AUD/USD pair back towards the mid-point of 0.71 handle after the Reserve Bank of Australia (RBA) kept the key rate unchanged at 2.0%.

    Markets mull over RBA policy stance, with the statement noting that low inflation levels leave more scope for easing, while the AUD is adjusting to the changing economic outlook. The statement also added that low rates are supporting demand.

    However, the upside remains capped as the latest domestic economic data coupled with dismal China manufacturing PMI reports continue to weigh on investors’ minds.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7138/39 (100-DMA/ 1h 10-SMA) above which gains could be extended to the next hurdle located at 0.7175 (200-DMA). On the flip side, the immediate support located at 0.7100 (psychological levels). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7081/78 (Feb 17 & 16 Low).
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