Forex: AUD/USD: Aussie, bearish after rate hike, drops below 0.9000

Tue, Nov 3 2009, 08:10 GMT
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FXstreet.com (Barcelona) - Reserve Bank of Australia has raised its benchmark interest rate, from 3.25% to 3.5%, ,and the Aussie experienced a bearish reaction, dropping more than 100 pips, from 0.9095 ahead of the RBA decision, to levels below 0.8985 support, reaching 0.8960 session low at European opening times.

bearish sentiment remains dominating, according to Liviu Flesar, technical analyst at InnerFX, who points out to 0.8930 as next important support level: "The RBA has raised interest rates by 25-bp to 3.50% as expected but upside action has been limited, therefore bearish pressure remains intact. Support is seen at .9000 backed by a more notable barrier at .8930 – the rising trend line seen on the daily chart below."

Support levels, according to Flesar, lie at 0.8930/50, 0.8800 and 0.8750. On the upside, resistance levels are 0.9090/00, 0.9200 and 0.9325/50.

AUD/USD

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