7 Apr 2015
AUD/USD tests 0.77 as RBA keeps rates on hold
FXStreet (Mumbai) - AUD/USD extends its upward moves and spiked to fresh weekly highs just below 0.77 barrier after Reserve Bank of Australia (RBA) left the cash rate unchanged at 2.25%.
AUD/USD jumps from 0.7605
Currently, the AUD/USD rallied above 1% at 0.7693 shortly after RBA’s policy announcement, although quickly retreated and now trades lifted at 0.7673 levels. AUD/USD rocketed to fresh one-week highs, testing 0.77 handle after RBA left its monetary policy stance unadjusted, holding rates steady at 2.25% record lows.
However, RBA mentioned in its statement that further depreciation in the exchange rate seems more likely and that the board would assess case for further monetary easing in its forthcoming meetings while the domestic growth still remains weak.
RBA Governor Glenn Stevens said in a statement,
"The Australian dollar has declined noticeably against a rising US dollar over the past year, though less so against a basket of currencies. Further depreciation seems likely, particularly given the significant declines in key commodity prices,"
"A lower exchange rate is likely to be needed to achieve balanced growth in the economy,"
"Growth is continuing at a below-trend pace, with overall domestic demand growth quite weak as business capital expenditure falls. As a result, the unemployment rate has gradually moved higher over the past year."
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7703 (20-DMA) levels, above which gains could be extended to 0.7738 (50-DMA) levels. On the flip side, support is seen at 0.7600 levels from here it to 0.7577 (Today’s Low) levels.
AUD/USD jumps from 0.7605
Currently, the AUD/USD rallied above 1% at 0.7693 shortly after RBA’s policy announcement, although quickly retreated and now trades lifted at 0.7673 levels. AUD/USD rocketed to fresh one-week highs, testing 0.77 handle after RBA left its monetary policy stance unadjusted, holding rates steady at 2.25% record lows.
However, RBA mentioned in its statement that further depreciation in the exchange rate seems more likely and that the board would assess case for further monetary easing in its forthcoming meetings while the domestic growth still remains weak.
RBA Governor Glenn Stevens said in a statement,
"The Australian dollar has declined noticeably against a rising US dollar over the past year, though less so against a basket of currencies. Further depreciation seems likely, particularly given the significant declines in key commodity prices,"
"A lower exchange rate is likely to be needed to achieve balanced growth in the economy,"
"Growth is continuing at a below-trend pace, with overall domestic demand growth quite weak as business capital expenditure falls. As a result, the unemployment rate has gradually moved higher over the past year."
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7703 (20-DMA) levels, above which gains could be extended to 0.7738 (50-DMA) levels. On the flip side, support is seen at 0.7600 levels from here it to 0.7577 (Today’s Low) levels.