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4 Mar 2014
AUD/USD didn't like the RBA decision and dropped to the support of 0.8900
FXStreet (Moscow) - AUD/USD knee-jerked higher to 0.8968 on the RBA rate decision, but the upside was not sustained as the pair made a U-turn and quickly crashed to the support of 0.8900 where the downside was capped by strong demand.
What RBA has in store for Aussie?
AUD/USD started Monday with the gap lower, but managed to fill it pretty soon as the Aussie was in demand across the board. The upside was caused mostly by positioning ahead of the RBA rate decision, as investors did not want to push the currency too low before they know what the central bank is up to. The technical factors also played an important role as the pair tested the strong support of 0.8890 reinforced by stops at 0.8880, but failed to break lower. Anyway, the RBA was wise enough and left the rate unchanged at 2.5% in line with forecasted. But they managed to spook the markets with unexpected reference to the Aussie exchange rate, noting that it is too expensive by historical standards. That was a red flag for the traders who started to sell the currency. The macroeconomic calendar is barren today, so the AUD/USD is mostly a technical and speculative play. Watch out for the support at 0.8900-0.8890, followed by 0.8873. The upside is likely to be limited by 0.8950.
What are today’s key AUD/USD levels?
Today's central pivot point can be found at 0.8922, with support below at 0.8896, 0.8865 and 0.8839, with resistance above at 0.8953, 0.8979 and 0.9010. Hourly Moving Averages are bearish, with the 200SMA at 0.8976 and the daily 20EMA at 0.8958. Hourly RSI is neutral at 52.
What RBA has in store for Aussie?
AUD/USD started Monday with the gap lower, but managed to fill it pretty soon as the Aussie was in demand across the board. The upside was caused mostly by positioning ahead of the RBA rate decision, as investors did not want to push the currency too low before they know what the central bank is up to. The technical factors also played an important role as the pair tested the strong support of 0.8890 reinforced by stops at 0.8880, but failed to break lower. Anyway, the RBA was wise enough and left the rate unchanged at 2.5% in line with forecasted. But they managed to spook the markets with unexpected reference to the Aussie exchange rate, noting that it is too expensive by historical standards. That was a red flag for the traders who started to sell the currency. The macroeconomic calendar is barren today, so the AUD/USD is mostly a technical and speculative play. Watch out for the support at 0.8900-0.8890, followed by 0.8873. The upside is likely to be limited by 0.8950.
What are today’s key AUD/USD levels?
Today's central pivot point can be found at 0.8922, with support below at 0.8896, 0.8865 and 0.8839, with resistance above at 0.8953, 0.8979 and 0.9010. Hourly Moving Averages are bearish, with the 200SMA at 0.8976 and the daily 20EMA at 0.8958. Hourly RSI is neutral at 52.