Current trend

Despite the Australian economy is currently going through difficult times, the RBA decided to keep the interest rate at 2% earlier today. After the decision, 10-year Australian government bonds’ yield grew, while the AUD/USD pair gained almost 60 points.

However, today’s data on the Australian trade balance for August showed a big drop and amounted to -3.095 billion Australian Dollars against the previous -2.792 billion (forecasted -2.55 billion), which suggests that a further AUD decline is likely.

Support and resistance

The price remains near the strong resistance level at 0.7115 (ЕМА200 on the 4-hour chart).

An upward correction in the pair could continue to the level of 0.7170 (ЕМА50 on the daily chart), while a breakout and consolidation above the level of 0.7270 could start a short-term upward trend towards the level of 0.7500 (23.6% Fibonacci correction and ЕМА144 on the daily chart).

OsMA and Stochastic on the 4-hour and daily charts signal purchases, but remain bearish on the weekly and monthly charts.

Support levels: 0.7035, 0.6960, 0.6910.

Resistance levels: 0.7115, 0.7170, 0.7200, 0.7270.

Trading tips

Long positions can be opened after the breakout of the level of 0.7135 with targets at 0.7180, 0.7200 and stop-loss at 0.7115.

Short positions can be opened after the price consolidation below the level of 0.7110 with targets at 0.7060, 0.7030 and stop-loss at 0.7130.

AUD/USD: interest rate did not change yet

AUD/USD: interest rate did not change yet




The material published on this page is produced by LiteForex and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.



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