- Aussie volatile after the RBA kept interest rates unchanged and maintained its neutral stance.
- In the statement that followed, RBA remained upbeat on global growth and cautiously upbeat on China.
- There was no change in the guidance on the currency, which suggests that the current level of the A$ is not an issue for the RBA.
- AUD/USD spiked to hit highs of 0.7625 before reversing gains to slip back to 0.7592.
- The pair has now resumed upside and has regained the 0.76 handle and is currently trading at 0.7617.
- Upside finds stiff resistance at 0.7640-45 region. Only break above will see bullishness.
- Rising expectations of Fed tightening at March meeting and lowering of China growth targets are likely to keep upside limited.
Support levels - 0.7607 (5-DMA), 0.7543 (Mar 3 low), 0.7528 (200-DMA)
Resistance levels - 0.7640 (trendline), 0.7656 (20-DMA), 0.77, 0.7740 (Feb 23 high)
TIME TREND INDEX OB/OS INDEX
1H Bullish Overbought
4H Bullish Neutral
1D Neutral Neutral
1W Neutral Neutral
Recommendation: Good to go short on rallies around 0.7640/55, SL: 0.7740, TP: 0.76/ 0.7545/ 0.7530/ 0.75/ 0.7450
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 68.6472(Slightly bullish), while Hourly USD Spot Index was at -17.0513 (Neutral) at 0450 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
