- Aussie buoyed by upbeat data and hawkish RBA statement, drives AUD/USD higher.
- Earlier today data released showed the October retail sales registered at 0.5% m/m, beating expectations of 0.3% vs previous 0.1% revised from 0.0%.
- The Reserve Bank of Australia kept the cash rate (interest rate) unchanged as expected but sounded a little bit hawkish on inflation.
- The central bank has omitted the line - "inflation is likely to remain low for some time". Further, it says the Australian dollar remains within a range of the past two years.
- AUD/USD spikes past 20-DMA at 0.7609, hits 3-week highs at 0.7653, bias higher.
- Technical studies have turned bullish, RSI and Stochs are biased higher, bullish divergence on RSI and Stochs raises scope for upside.
- The pair has held 100W SMA support and upside now hovers around 50W SMA at 0.7663.
- Break above 0.7663 finds next major resistance at 200-DMA at 0.7691. Further upside on break above.
- We see strong trendline support at 0.7535, and bullish invalidation only on break below.
Support levels - 0.7608 (20-DMA), 0.7598 (5-DMA), 0.7552 (100W SMA), 0.7535 (trendline)
Resistance levels - 0.7663 (50W SMA), 0.7671 (23.6% Fib retrace of 0.81250 to 0.75320 fall), 0.7691 (200-DMA)
Recommendation: Good to go long on dips around 0.7630/40, SL: 0.7595, TP: 0.7665/ 0.7690/ 0.7730
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 144.492 (Bullish), while Hourly USD Spot Index was at -10.4328 (Neutral) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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