AUD/USD: Recovery Beyond 0.6800 Shows After RBA Rate Decision

  • The AUD/USD gains after the Reserve Bank of Australia (RBA) reported no adjustment in its monetary policy. With this, the pair steers clear of the previous bearish inclination as the central bank of Australia lauded its financial system while likewise saying that the intensity of the downturn will be less than expected.

    Earlier today, the bullish pair faltered from its highest since late January, at around 0.6800, as the risk-on sentiment paused with the current global challenges amidst favorable performance.

     

    The Challenge

    A tilt in the market’s sentiment has shown influencing the bulls lately. To name some, protests fired by George Floyd’s case turn extreme as agitators began plundering shops and filled places close to the White House.

    On the other hand, it is important to note, however, that during the 1st quarter, Australia’s Current Account Balance developed past 6.3 B estimate to 8.4 B, while Company Gross Operating Profits likewise beat negative expectations with a 1.1% expansion.

     

    What Happens Next?

    Having seen the initial response to the RBA’s decision, traders are probably going to watch out for news from the US to decide risk-sentiment. Rising issues from China and Hong Kong will also be significant to follow.

     

    Technical Outlook

    An upward trend from April 14, presently around 0.6815, confines the pair’s quick upside with overbought RSI conditions. Therefore, sellers can watch key levels focusing on March high encompassing 0.6685. However, an upside past 0.6820 will heighten the currency’s rise towards the early-January lows close to 0.6850.

     

     

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