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AUD/USD reverts to 0.7170 post RBA-led wild swings

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 3, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The rates-on hold stance by the Reserve Bank of Australia (RBA) at its monetary policy decision today, sent the Aussie to 0.72 handle in an impulsive spike and quickly retraced to 0.7127 daily lows, before recovering to 0.7170 region, where it now wavers.

    AUD/USD volatile on RBA decision

    Currently, the AUD/USD pair trades 0.32% higher at 0.7172, recovering nearly 50-pips from daily lows reached at 0.7127 on the announcement. The AUD/USD pair experienced about 40 pips wild swings on both sides in a knee-jerk reaction to the RBA’s rates-on hold policy decision, while leaving doors open for further easing as the inflation remains considerably low.

    However, the Aussie manages to recover lost ground and now trades in the pre-RBA range as the RBA talked up Australia’s economic outlook while reiterating that the AUD level is adjusting to the lower commodity prices.

    Looking ahead, markets will continue to digest the latest RBA policy decision while await fresh cues from the upcoming US data, which may provide further insights on the Fed interest rates outlook ahead of the crucial US NFP data due out on Friday.

    AUD/USD Levels to watch

    The pair has an immediate resistance at 0.7200 (Today’s High/ round number), above which gains could be extended to 0.7217/18 (100 & 20-DMA) levels. On the flip side, support is seen at 0.7147/27 (50-DMA/ Today’s Low) from here it to 0.7082 (daily S2).
    For more information, read our latest forex news.
     

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