AUDUSD Approaches Key Resistance Ahead of RBA Rates

Summary:

AUDUSD is consolidating after strong gains on Tuesday ahead of tomorrow's Reserve Bank of Australia interest rate decision.

AUDUSD is consolidating after strong gains on Tuesday ahead of tomorrow’s Reserve Bank of Australia interest rate decision. The bank are unlikely to move again after last month’s record cut to 0.1%.

The U.S. dollar saw a big release of economic numbers yesterday but these didn’t produce a spark for the greenback. Durable goods orders were better-than-expected but PCE inflation and Michigan consumer confidence were in-line.

The deputy governor of the RBA, Guy Debelle, was telling economists this week about the importance of stimulus and its success in lowering the currency and saving jobs in the country. Last month’s slashing of interest rates to a record low, coupled with a new bond-buying program should mean that the bank will hold steady on any further action but now that the central bank has talked up dovishness, we may see further statements along those lines tomorrow.

AUDUSD Technical Outlook

AUDUSD rallied above resistance on Tuesday to 0.7360 and is nearing the key 0.7400 level. That level was the 0.7400 high and will be the obstacle to further gains in the Aussie. Traders should look for a bullish or bearish close at this level and 200 pips would be the first target. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.