Australian Dollar (AUDUSD) rebounds after RBA Meeting

Intermediate
  • Tuesday has already seen the Reserve Bank of Australia (RBA) leave interest rates unchanged at their meeting but signal again that a ‘gentle turning point’ appears to have been reached in the economy.
  • This has seen the Australian Dollar perform well versus the US Dollar overnight as the tone continues to shift to more positive, de facto less dovish and possibly slightly more hawkish.
  • In addition, further upbeat soundings on trade overnight into Tuesday have reinforced comments from late last week, which seen a broad risk on theme continue (Asian equity bourses pushing still higher, the S&P 500, the Nasdaq and Dow Jones Industrial Average hitting all-time peaks Monday, the DJIA joining the party, finally eclipsing its July peak).

AUDUSD positive tone above .6873/71

A dip Monday and a rebound overnight, but still a consolidation tone, activity “inside” Thursday’s range that saw a rally up through various resistances including the key peaks at .6883 and .6895, to sustain bull forces from both the latter October and mid-October upside extensions, and whilst above .6873/71 to keep the bias higher for Tuesday.

The mid-October surge just through the key .6809 level saw an intermediate-term shift to bullish.

For Today:                                                        

  • We see an upside bias for .6929; break here aims for .6955, maybe even .6991.
  • But below .6873/71 opens risk down to .6845 and maybe .6806.

Intermediate-term Outlook – Upside Risks: We see an upside risk for .6991/.7008.

  • Higher targets would be .7082 and .7206.
  • What Changes This? Below .6806 shifts the intermediate-term outlook back to neutral; through .6720 is needed for an intermediate-term bear theme.

4 Hour AUDUSD Chart

audusd chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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