AUD/USD pulls away from daily highs, clings to small gains near 0.6440


  • RBA left its policy rate unchanged at 0.25% as expected.
  • USD gathers strength on Tuesday to keep the pair's gains limited.
  • Trade Balance and ISM Non-Manufacturing PMI data from US coming up next.

The AUD/USD pair edged higher during the Asian session on Tuesday after the Reserve Bank of Australia (RBA) left its policy rate unchanged at 0.25%. However, the selling pressure surrounding the major European currencies helped the USD find demand and caused the pair to erase a portion of its gains. After dropping to 0.6417, the pair recovered modestly and was last seen trading at 0.6445, where it was still up 0.3% on a daily basis.

In its policy statement, the RBA noted that the Australian economy is going through a very difficult period and added that there is considerable uncertainty about the outlook. Commenting on the pair's outlook after the RBA's remarks, “we see the A$ as being expensive to fair value, that it remains a sell on strength to 0.6550, and it should be closer to 0.62," argued Westpac analysts.  

USD stays strong on Tuesday

On the other hand, following Monday's decisive rebound, the US Dollar Index pushed higher on Tuesday boosted by the sharp fall witnessed in the EUR/USD pair and made it difficult for the pair to preserve its bullish momentum. At the moment, the index is up 0.35% on the day at 99.85.

During the American trading hours, Trade Balance and the ISM's Non-Manufacturing PMI report from the US will be watched closely by the market participants. The only data featured in the Australian economic docket on Wednesday will be the Retail Sales for March.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.6444
Today Daily Change 0.0017
Today Daily Change % 0.26
Today daily open 0.6427
 
Trends
Daily SMA20 0.6374
Daily SMA50 0.6293
Daily SMA100 0.6557
Daily SMA200 0.6682
 
Levels
Previous Daily High 0.6435
Previous Daily Low 0.6372
Previous Weekly High 0.657
Previous Weekly Low 0.6382
Previous Monthly High 0.657
Previous Monthly Low 0.598
Daily Fibonacci 38.2% 0.6411
Daily Fibonacci 61.8% 0.6396
Daily Pivot Point S1 0.6387
Daily Pivot Point S2 0.6348
Daily Pivot Point S3 0.6324
Daily Pivot Point R1 0.645
Daily Pivot Point R2 0.6474
Daily Pivot Point R3 0.6513

 

 

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