AUD/USD responds positively to Lowe

As expected, AUD/USD was guided by the 55-hour SMA during the past session. Thus, the rate edged slightly lower, but nevertheless remained near the monthly S1.

The RBA Governor Philip Lowe speaking at 0900GMT shook the market positively, as he pointed that the next interest rate move is most likely to be a hike. As a result, the pair recovered from its five-month low of 0.7533 and surged 44 pips up to the 0.7580 mark.

Technical indicators suggest that such a leap should be followed by a period of bearish correction. The nearest support along the way is the monthly S1 and the 55-hour SMA circa 0.7555. This strong barrier could effectively guard the southern barrier and thus leave the rate trading between this level and the weekly PP in the 0.7555/0.7585 area.

Add a comment