FxWirePro: Aussie rebounds from 4-month trough, recovery likely to remain fragile
The Australian dollar rebounded from a 4-month trough following the Reserve Bank of Australia's monetary policy decision. The RBA held interest rates steady at a record low of 0.75 percent and stayed upbeat on the econom…
The Australian dollar rebounded from a 4-month trough following the Reserve Bank of Australia's monetary policy decision. The RBA held interest rates steady at a record low of 0.75 percent and stayed upbeat on the economic outlook despite the impact of bushfires at home and the coronavirus in China.
RBA Governor Philip Lowe stuck with a forecast of 2.75 percent growth this year and 3 percent next; and reiterated that the central bank stood ready to ease again if needed, following three cuts last year.
The upside in the major appears limited as rising concerns about a widening coronavirus outbreak in China and its economic fallout continued to dent investor sentiment. Investors await further stimulus to boost China’s economy due to the onslaught of coronavirus over the past few days.
The Aussie was trading 0.4 percent up at 0.6719, having hit a low 0.6678 earlier in the session, its lowest since October 2.
Technical indicators are biased higher on hourly charts: RSI strong at 66.67, MACD supports upside and Stochs are at overbought levels.
Immediate resistance is located at 0.6739 (7-EMA), a break above could take it near 0.6773 (10-DMA).
On the downside, support is seen at 0.6670, a break below could drag it till 0.6645.
