3 May 2016
AUD/USD advances through 0.7700 ahead of RBA
The bid tone around the AUD keeps growing bigger as we progress towards the RBA policy decision, now pushing AUD/USD above 0.77 handle.
AUD/USD: RBA to cut or not to cut?
Currently, the AUD/USD pair jumps 0.53% to fresh four-day highs of 0.7709, accelerating to the upside beyond a break of key 20-DMA barrier now placed at 0.7684. The AUD bulls remains relentless and continue to cheer upbeat Australian building approvals data, which staged a solid rebound in March. Building consents rose 3.7% m/m in March, following a revised 3.1% increase in February, and coming in much better than the forecast of a 1.8% decline.
While markets completely shrugged off dismal China Caixin manufacturing PMI, that showed a reading of 49.4 for April, declining from 49.7 posted in March and missing expectations of a 49.8 reading.
More so, the AUD/USD pair extends its recent bullish momentum as markets now price-in a 53% chance of a RBA rate cut at its policy meeting due later today amid slowing inflation and higher Aussie.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7750 (psychological levels) above which gains could be extended to the next hurdle located at 0.7766/70 (daily R3/ Apr 27 High). On the flip side, the immediate support located at 0.7643/39 (50-DMA/ daily pivot). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7600/0.7595 (May 2 Low).
AUD/USD: RBA to cut or not to cut?
Currently, the AUD/USD pair jumps 0.53% to fresh four-day highs of 0.7709, accelerating to the upside beyond a break of key 20-DMA barrier now placed at 0.7684. The AUD bulls remains relentless and continue to cheer upbeat Australian building approvals data, which staged a solid rebound in March. Building consents rose 3.7% m/m in March, following a revised 3.1% increase in February, and coming in much better than the forecast of a 1.8% decline.
While markets completely shrugged off dismal China Caixin manufacturing PMI, that showed a reading of 49.4 for April, declining from 49.7 posted in March and missing expectations of a 49.8 reading.
More so, the AUD/USD pair extends its recent bullish momentum as markets now price-in a 53% chance of a RBA rate cut at its policy meeting due later today amid slowing inflation and higher Aussie.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7750 (psychological levels) above which gains could be extended to the next hurdle located at 0.7766/70 (daily R3/ Apr 27 High). On the flip side, the immediate support located at 0.7643/39 (50-DMA/ daily pivot). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7600/0.7595 (May 2 Low).