3 Sep 2013
AUD/USD finishes up, but off highs at 0.8976; RBA decision to drive next big move?
FXstreet.com (Barcelona) - The AUD/USD got a boost Monday from better than expected data out of China as well as Australia. The rally stalled out mid-session, however, as traders flattened out ahead of Tuesday’s RBA decision.
The RBA is unlikely to cut rates Tuesday
Barring any surprises, the Reserve Bank of Australia will leave rates unchanged Tuesday as the data flow out of Australia and China recently has given no further justification for more cuts. Certainly risks remain – thus no rate hikes either.
Technical outlook for AUD/USD
Technicians note that the AUD/USD appears to have completed a short-term downside correction at 0.8963 at 16:00 GMT. If that level is broken, they say that the next support will come in at 0.8938. The first two resistance levels come in at 0.8990 and 0.9017, but as long as support holds technicians are calling for a move up to at least 0.9078.
The RBA is unlikely to cut rates Tuesday
Barring any surprises, the Reserve Bank of Australia will leave rates unchanged Tuesday as the data flow out of Australia and China recently has given no further justification for more cuts. Certainly risks remain – thus no rate hikes either.
Technical outlook for AUD/USD
Technicians note that the AUD/USD appears to have completed a short-term downside correction at 0.8963 at 16:00 GMT. If that level is broken, they say that the next support will come in at 0.8938. The first two resistance levels come in at 0.8990 and 0.9017, but as long as support holds technicians are calling for a move up to at least 0.9078.