7 Aug 2015
AUD/USD attempts a bounce to 0.7400
FXStreet (Mumbai) - AUD/USD keeps the bid tone intact during the European session, finding good support at 0.7360 levels, as the sentiment around the Australian dollar remains lifted as markets continue to cheer RBA’s upbeat comment on the AUD level in its quarterly monetary policy statement.
AUD/USD lifted on RBA’s upbeat tone
Currently, the AUD/USD pair trades 0.37% higher at 0.7373, fighting hard for 0.74 handle. The AUD/USD pair is seen picking-up pace and attempts another run for 0.74 barrier as the European traders seems to have spurred fresh AUD demand, still digesting RBA quarterly publication.
The RBA's quarterly Statement noted that "there are increasing signs that the depreciation of the exchange rate is providing additional support to demand for domestically produced goods and services, which should in time lead to more investment."
On Tuesday the RBA decided to keep interest rates on hold and indicated for the first time in years that the Australian dollar was closer to its fundamental level.
Moreover, a rebound seen in oil and gold prices also boosts the Australian dollar versus the US dollar as the OZ economy is heavily dependent on commodities for its exports.
However, the upside seems limited as traders are likely to move on towards the US currency ahead of the US non-farm payrolls data scheduled to release later today.
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AUD/USD Technical Levels
The pair has an immediate resistance at 0.7400 levels, above which gains could be extended to 0.7429 (Aug 4 High). On the flip side, support is seen at 0.7300 levels from here it to 0.7261 (Aug 4 Low) levels.
AUD/USD lifted on RBA’s upbeat tone
Currently, the AUD/USD pair trades 0.37% higher at 0.7373, fighting hard for 0.74 handle. The AUD/USD pair is seen picking-up pace and attempts another run for 0.74 barrier as the European traders seems to have spurred fresh AUD demand, still digesting RBA quarterly publication.
The RBA's quarterly Statement noted that "there are increasing signs that the depreciation of the exchange rate is providing additional support to demand for domestically produced goods and services, which should in time lead to more investment."
On Tuesday the RBA decided to keep interest rates on hold and indicated for the first time in years that the Australian dollar was closer to its fundamental level.
Moreover, a rebound seen in oil and gold prices also boosts the Australian dollar versus the US dollar as the OZ economy is heavily dependent on commodities for its exports.
However, the upside seems limited as traders are likely to move on towards the US currency ahead of the US non-farm payrolls data scheduled to release later today.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7400 levels, above which gains could be extended to 0.7429 (Aug 4 High). On the flip side, support is seen at 0.7300 levels from here it to 0.7261 (Aug 4 Low) levels.