Recall that the RBA left intact the refi rate at 3.0% in its monetary policy meeting, in line with the majority of the consensus, although the statement turned up to be more dovish than expected.
“So the RBA is dovish but allowing recent easing to flow through before thinking of cutting again. They don’t discuss the currency much for fear of being labeled as a ‘currency war participant’ but it must be front and center on their radar…”, commented analyst Adrian Foster at Rabobank.
The cross is now losing 0.16% at 1.0420 facing the next support at 1.0380 (Lower Bollinger) and then 1.0361 (low Dec.28/Feb.1).
On the flip side, a break above 1.0457 (MA10d) would clear the way to 1.0468 (MA55d).