AUD/USD pauses RBA-led rally amid USD buying
|The AUD/USD pair rallied as high as 0.7680 after the RBA talked up the Australian economic growth prospects in its monetary policy statement, although the rally lost steam as broad based US dollar strength put a lid on the prices.
AUD/USD holds above 5-DMAs
Currently, the AUD/USD pair rises +0.16% to 0.7671, retreating from session highs of 0.7680 reached post-RBA decision. The RBA left its cash rate unchanged at a record low of 1.50%, while maintaining a neutral stance on the interest rates outlook.
The AUD bulls cheered a bit more upbeat outlook on the global economy and commodities’ prices, while the central expects Q4 GDP to make a comeback. However, the bullish momentum seen behind the greenback against its main competitors combined with reports of rising Chinese iron-ore stockpiles, continue to weigh on the spot.
Next of note for the US JOLTS openings data, which will be reported later in the NA session.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7699 (multi-week high) above which gains could be extended to the next hurdle located 0.7750 (psychological levels) and 0.7773 (Nov 9 high). On the flip side, the immediate support located at 0.7596/83 (1h 200-SMA/ 20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7524 (200-DMA) and below that 0.7500 (zero figure).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.