4 Aug 2015
AUD/USD spikes to 0.7340 as RBA keeps rates steady, talks up currency
FXStreet (Mumbai) - AUD/USD extended gains and swung back higher above 0.73 handle in mid-Asia, after the Reserve Bank of Australia (RBA) kept its monetary policy settings unchanged with the cash rate steady at 2%. The Aussie jolted higher as the RBA policy statement was not read dovish by markets with the central sounding upbeat on the economic outlook.
AUD/USD rises from 0.7297 on RBA
Currently, the AUD/USD pair trades 0.73% higher at 0.7338, having jumped to fresh session highs at 0.7341 immediately after the policy announcement. The AUD bulls jumped backed in control, extending its Aus-retail sales data-led recovery after the RBA kept rates on hold with the policy statement offering no explicit dovish bias while keeping its future course of policy outlook to be data-dependent.
However, the key driver for the spike in the Aussie was the big shift in RBA’s stance 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 seems both likely and necessary.
Earlier today, the Aussie was seen better bid following upbeat Australian retail sales and trade data which came at +0.7 vs +0.4% estimates and +0.3% last, while trade balance also outpaced estimated.
Meanwhile, traders now await US economic releases due later in the New York session for further momentum.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7363 (July 24 High) levels, above which gains could be extended to 0.7400. On the flip side, support is seen at 0.7280 levels from here it to 0.7252 (July 30 Low) levels.
AUD/USD rises from 0.7297 on RBA
Currently, the AUD/USD pair trades 0.73% higher at 0.7338, having jumped to fresh session highs at 0.7341 immediately after the policy announcement. The AUD bulls jumped backed in control, extending its Aus-retail sales data-led recovery after the RBA kept rates on hold with the policy statement offering no explicit dovish bias while keeping its future course of policy outlook to be data-dependent.
However, the key driver for the spike in the Aussie was the big shift in RBA’s stance 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 seems both likely and necessary.
Earlier today, the Aussie was seen better bid following upbeat Australian retail sales and trade data which came at +0.7 vs +0.4% estimates and +0.3% last, while trade balance also outpaced estimated.
Meanwhile, traders now await US economic releases due later in the New York session for further momentum.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7363 (July 24 High) levels, above which gains could be extended to 0.7400. On the flip side, support is seen at 0.7280 levels from here it to 0.7252 (July 30 Low) levels.