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5 May 2015
Further RBA rate hike expectations pared back, long AUD/USD – Growth Aces
FXStreet (Barcelona) - The Growth Aces Research Team, reviews the RBA monetary policy statement and further suggests remaining long on AUD/USD, targeting 0.8230 levels.
Key Quotes
“Australia's central bank cut its cash rate a quarter point to an all-time low of 2.0%, in line with market expectations and against our forecast.”
“The RBA statement announcing the rate cut noted some improvement in the economy while omitting a mention of any need for further action.”
“The AUD/USD initially dropped after the RBA decision, but the dip was short-lived. The market pared back the prospects of rates going under 2%, short-term yields climbed and the AUD/USD more than reversed the drop.”
“The central bank will release a quarterly review of the economy and policy on Friday.”
“Australia's trade deficit amounted to AUD 1.322 bn in March vs. the median forecast for AUD 1.0 bn deficit.”
“Our AUD/USD long survived despite the RBA cut rates against our expectations. A long lower wick was formed on the chart and the pair broke above 10-dma at 0.7856. Technical situation is encouraging for our long position now.”
“Resistance: 0.7917 (session high May 5), 0.7938 (hourly high Apr 30), 8000 (psychological level)”
“Support: 0.7796 (session low May 5), 0.7792 (low Apr 27), 0.7765 (21-dma)”
“AUD/USD: long at 0.7870, target 0.8230, stop-loss 0.7790, risk factor ***”
Key Quotes
“Australia's central bank cut its cash rate a quarter point to an all-time low of 2.0%, in line with market expectations and against our forecast.”
“The RBA statement announcing the rate cut noted some improvement in the economy while omitting a mention of any need for further action.”
“The AUD/USD initially dropped after the RBA decision, but the dip was short-lived. The market pared back the prospects of rates going under 2%, short-term yields climbed and the AUD/USD more than reversed the drop.”
“The central bank will release a quarterly review of the economy and policy on Friday.”
“Australia's trade deficit amounted to AUD 1.322 bn in March vs. the median forecast for AUD 1.0 bn deficit.”
“Our AUD/USD long survived despite the RBA cut rates against our expectations. A long lower wick was formed on the chart and the pair broke above 10-dma at 0.7856. Technical situation is encouraging for our long position now.”
“Resistance: 0.7917 (session high May 5), 0.7938 (hourly high Apr 30), 8000 (psychological level)”
“Support: 0.7796 (session low May 5), 0.7792 (low Apr 27), 0.7765 (21-dma)”
“AUD/USD: long at 0.7870, target 0.8230, stop-loss 0.7790, risk factor ***”