FxWirePro: AUD/USD rallies to fresh two-week highs post RBA, ignores poor trade deficit data
AUD/USD opened Tuesday 0.7081, dipped to 0.7078 in early trade after local data showed a deterioration in the trade deficit Australian economy posted a trade deficit of AUD 3.095 bln in Aug, sliding 11% from July's short…
AUD/USD opened Tuesday 0.7081, dipped to 0.7078 in early trade after local data showed a deterioration in the trade deficit
Australian economy posted a trade deficit of AUD 3.095 bln in Aug, sliding 11% from July's shortfall, missing expectations at AUD 2.40 bln
The pair later spiked to 0.7118 after the Reserve Bank of Australia, as widely expected, left interest rates unchanged at 2%
Many had expected a dovish statement and AUD short-covering was seen post unchanged RBA statement
The central bank sounded optimistic on growth prospects and with regards to AUD level, said that the currency is adjusting to the significant declines in key commodity prices
Currently AUD/USD is trading at 0.7121, at fresh two-week highs, up over 40 pips post RBA decision
Immediate resistance at 0.7158 (Sept 22 High), above which gains could be extended to 0.7196 (Sept 21 High)
On the flip side, support is seen at 0.7093 (Daily Kijun) and further below at 0.7053 (Sept 22 Low)
