AUD/USD chart on Trading View used for analysis
- AUD/USD erased losses and turned positive post RBA policy rate decision.
- The pare edged higher from session lows at 0.7193 and is currently trading at 0.7247 at 0350 GMT.
- The Reserve Bank of Australia (RBA) left rates unchanged as widely expected and lowered the growth outlook to 3 % for 2019.
- However, the central bank sounded relatively upbeat about the labor market.
- RBA essentially banks on the sustained labor market tightening to push inflation higher, the wording refrained from reinforcing markets' belief that a rate cut could be in the offing by the end of 2019.
- AUD/USD is in a major bear trend and rallies have been capped at 200-DMA which is stiff resistance currently at 0.7292.
- Breakout above 200-DMA is required for a sustained move higher. Scope then for test of 50% Fib at 0.7440.
- 21-EMA is immediate support at 0.7186. Break below will see further weakness.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
