3 Sep 2013
AUD/USD spikes above 0.9000 after RBA
FXstreet.com (Athens) - The AUD/USD is heading upwards, breaking the resistance of 0.9000, after RBA left the rates unchanged.
The AUD/USD was initially supported by the risk-seeking atmosphere to a 0.9014 high, faded a little then and then steadied around 0.8980-0.8990, before the RBA minutes. The RBA left unchanged the rates at the historical low level of 2.5% and the pair skyrocketed to 0.9030 area, gaining more than 50 pips in a couple of minutes. The RBA although less dovish than expected, mentioned that ‘"the Board will continue to assess the outlook and adjust policy as needed" and that “In Australia, the economy has been growing a bit below trend over the past year. This is expected to continue in the near term as the economy adjusts to lower levels of mining investment. The unemployment rate has edged higher. Inflation has been consistent with the medium-term target. With growth in labor costs moderating, this is expected to remain the case over the next one to two years, even with the effects of the recent depreciation of the exchange rate.
TECHNICAL PERSPECTIVE ON AUD/USD
The ‘Aussie’ managed to gain over 50 pips after the release of the RBA minutes, breaking the crucial resistance as of 0.9000 area. Investors might have in mind that a clear break above 0.9035 initially exposes the 0.9256-95 region (range top, 23.6% Fib retracement). At the time of writing, the pair is trading at 0.9039, up 0.72%, nearly its daily high as of 0.9044. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support can be found at 0.8949, 0.8926 and 0.8904, while resistance at 0.9050, 0.9063 and 0.9086, respectively.
The AUD/USD was initially supported by the risk-seeking atmosphere to a 0.9014 high, faded a little then and then steadied around 0.8980-0.8990, before the RBA minutes. The RBA left unchanged the rates at the historical low level of 2.5% and the pair skyrocketed to 0.9030 area, gaining more than 50 pips in a couple of minutes. The RBA although less dovish than expected, mentioned that ‘"the Board will continue to assess the outlook and adjust policy as needed" and that “In Australia, the economy has been growing a bit below trend over the past year. This is expected to continue in the near term as the economy adjusts to lower levels of mining investment. The unemployment rate has edged higher. Inflation has been consistent with the medium-term target. With growth in labor costs moderating, this is expected to remain the case over the next one to two years, even with the effects of the recent depreciation of the exchange rate.
TECHNICAL PERSPECTIVE ON AUD/USD
The ‘Aussie’ managed to gain over 50 pips after the release of the RBA minutes, breaking the crucial resistance as of 0.9000 area. Investors might have in mind that a clear break above 0.9035 initially exposes the 0.9256-95 region (range top, 23.6% Fib retracement). At the time of writing, the pair is trading at 0.9039, up 0.72%, nearly its daily high as of 0.9044. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support can be found at 0.8949, 0.8926 and 0.8904, while resistance at 0.9050, 0.9063 and 0.9086, respectively.