Overnight, the RBA again referred to the unusual strength of the Australian dollar, which persists despite the weakening global outlook and the falloff in commodity prices. Again, the currency's strength was attributed to foreign buying of Australian bonds, but this time the RBA made specific mention of purchases of a modest amount of AUD by the Swiss National Bank, according to Research Analyst Chris Walker at UBS.
Despite this recent setback, the AUD/USD remains one of Tuesday’s shining stars, notching an advance of +0.47% after settling at 1.0493. The technical analyst team at ICN.com cites the pair’s next resistances at 1.0510, then 1.0560, and finally 1.0585. In the event of a sustained downward thrust or pattern reversal, supportive measures will initiate at 1.0475, 1.0440, and 1.0400.