By Fast Brokers – The AUD/USD has logged sizable gains today after the RBA’s minutes showed that although it paused its rate hikes, the central bank will consider raising rates again should economic fundamentals continue to improve. Therefore, investors should keep a look out for Australian employment and consumption data when it comes. The RBA’s minutes also revealed that the central bank decided to pause due to economic uncertainty in Europe and tightening in China. That being said, if European markets calm and investor uncertainty subsides the Aussie could benefit from anticipation of an RBA rate hike next meeting. EU and UK data printed mixed today while U.S. numbers came in positive. We notice the risk trade is stabilizing across the board and gold has darted beyond its highly psychological $1100/oz level. Investors should monitor activity in gold since today’s movement could signal lasting upward momentum in the precious metal, a positive development for the Aussie considering gold’s negative correlation with the Dollar. However, the Aussie does face some near-term technical barriers, most notably the psychological .90 level. Although Australia will be quiet on the data front tomorrow, investors will receive meeting minutes from both the BoE and Fed along with UK employment data and a host of U.S. data, highlighted by U.S. Building Permits.
Technically speaking, the Aussie has multiple uptrend line serving as technical cushions along with intraday, 12/11, and 12/12 lows. As for the topside, the Aussie has multiple downtrend line serving as technical barriers along with the highly psychological .90 level. Furthermore, 1/28 and 1/25 highs could serve as technical obstacles should they be reached.
Price: .8981
Resistances: .8987, .9006, .9018, .9039, .9058, .9074
Supports: .8966, .8949, .8928, .8917, .8905, .8886
Psychological: .89
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Market Commentary provided by Fast Brokers.
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