4 Aug 2015
AUD/USD extends RBA-driven rally, 0.7400 on sight
FXStreet (Mumbai) - The Australian dollar continues to outperform its American counterpart ahead of Europe open, driving AUD/USD to fresh weekly highs just shy of 0.74 barrier, as AUD bulls cheer RBA’s new wordings on the AUD levels while staying put with the cash rate decision.
AUD/USD corrects higher from 0.7340
Currently, the AUD/USD pair trades 1.24% higher at 0.7374, hovering close to fresh one-week highs reached at 0.7382 few minutes ago. The Aussie received the much-need impetus from RBA policy statement released earlier today following RBA’s status quo at its policy meeting.
However, what turned out to be a game changer for the Aussie, lifting the commodity currency nearly 100 pips was the big shift in RBA’s view on the AUD level. The policy statement noted, “The Australian dollar is adjusting to the significant declines in key commodity prices.” While in previous policy decisions, the central bank maintained that “further depreciation in the Australian dollar seems both likely and necessary.”
The Aussie also was boosted on upbeat Aus fundamentals released in early Asia which moved the pair away from six-year trough. Australian retail sales and trade data came at +0.7 vs +0.4% estimates and +0.3% last, while trade balance also outpaced estimated.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7400 levels, above which gains could be extended to 0.7422 (July 23 High). On the flip side, support is seen at 0.7280 levels from here it to 0.7252 (July 30 Low) levels.
AUD/USD corrects higher from 0.7340
Currently, the AUD/USD pair trades 1.24% higher at 0.7374, hovering close to fresh one-week highs reached at 0.7382 few minutes ago. The Aussie received the much-need impetus from RBA policy statement released earlier today following RBA’s status quo at its policy meeting.
However, what turned out to be a game changer for the Aussie, lifting the commodity currency nearly 100 pips was the big shift in RBA’s view on the AUD level. The policy statement noted, “The Australian dollar is adjusting to the significant declines in key commodity prices.” While in previous policy decisions, the central bank maintained that “further depreciation in the Australian dollar seems both likely and necessary.”
The Aussie also was boosted on upbeat Aus fundamentals released in early Asia which moved the pair away from six-year trough. Australian retail sales and trade data came at +0.7 vs +0.4% estimates and +0.3% last, while trade balance also outpaced estimated.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7400 levels, above which gains could be extended to 0.7422 (July 23 High). On the flip side, support is seen at 0.7280 levels from here it to 0.7252 (July 30 Low) levels.