AUD/USD Analysis: recovery continues despite the RBA may keep cutting rates
|AUD/USD Current Price: 0.6922
- RBA's Governor, Philip Lowe, hinted more rate cuts are coming.
- Aussie retreated from its highs as Wall Street trimmed part of its intraday gains.
The AUD/USD pair is finishing Thursday at around 0.6920, modestly retreating from a weekly high of 0.6935. The pair has raised on the back of broad dollar's weakness following the decision of the US Central Bank to clear the way toward a rate cut. Gains were limited by comments from RBA's Governor Philip Lowe, who hinted the official cash rate could be cut even further in the upcoming months amid “significant” underemployment hampering efforts to get wages and inflation up. In the trade war front, news indicated that the US and the Chinese trade teams will be meeting in Osaka next Tuesday, ahead of the Trump-Xi Jinping meeting, in an attempt to ease trade tensions. Meanwhile, US equities retreat from their highs mid-US afternoon, dragging the pair lower at the end of the day. The Australian macroeconomic calendar will remain empty this Friday.
The AUD/USD pair has reached the 50% retracement of its latest daily decline measured between 0.7021 and 0.6831 and has spent most of the last trading session hovering around the level. The 4 hours chart shows that the risk is skewed to the upside, as the price is developing well above a bullish 20 SMA, while technical indicators have stabilized near their daily highs, close to overbought territory. The same chart shows that the 100 and 200 SMA converge with the daily high reinforcing the 0.6930 price zone as an immediate resistance area.
Support levels: 0.6850 0.6820 0.6775
Resistance levels: 0.6930 0.6970 0.7010
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