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6 Aug 2013
AUD/USD eyes 0.9000 post-RBA
FXstreet.com (Edinburgh) -The Aussie dollar keeps the upper end of the range, lifting the AUD/USD near 0.8990 after the RBA cut the refi rate by 25 bps to a record low at 2.50%.
AUD/USD extends the upside
The rate cut was broadly expected and priced in by market participants, although the ‘less dovish’ communiqué by the central bank boosted the optimism around the beleaguered currency. In the opinion of Alvin Pontoh, Macro Strategist at TD Securities, “We take this as a signal that the Bank is happy to remain on hold near term, but wouldn't go as far as to say that the easing bias has been removed. We continue to expect the cash rate to be left on hold at 2.50% until late 2014”.
AUD/USD key levels
The pair is now advancing 0.61% at 0.8985 with the next hurdle at 0.9000 (low Jul.12) ahead of 0.9318 (high Jul.24) and then 0.9328 (mid-June low). On the downside, a breach of 0.8865 (low Aug.5) would bring 0.8846 (low Aug.27 2010) and finally 0.8830 (low Aug.26 2010).
AUD/USD extends the upside
The rate cut was broadly expected and priced in by market participants, although the ‘less dovish’ communiqué by the central bank boosted the optimism around the beleaguered currency. In the opinion of Alvin Pontoh, Macro Strategist at TD Securities, “We take this as a signal that the Bank is happy to remain on hold near term, but wouldn't go as far as to say that the easing bias has been removed. We continue to expect the cash rate to be left on hold at 2.50% until late 2014”.
AUD/USD key levels
The pair is now advancing 0.61% at 0.8985 with the next hurdle at 0.9000 (low Jul.12) ahead of 0.9318 (high Jul.24) and then 0.9328 (mid-June low). On the downside, a breach of 0.8865 (low Aug.5) would bring 0.8846 (low Aug.27 2010) and finally 0.8830 (low Aug.26 2010).