12 Aug 2015
AUD/USD swings back higher to 0.7360 on RBA’s Lowe
FXStreet (Mumbai) - The AUD/USD pair experienced sharp moves on Wednesday, slumping to the cheapest level since 2009, only to recover the entire slide now and extend higher mainly boosted by the latest comments from RBA deputy governor Lowe.
AUD/USD rises from 0.7250 levels
Currently, the AUD/USD pair trades 0.73% higher at fresh session highs of 0.7359, heading towards 0.7400 levels. The AUD bulls jumped back into the bids and regain lost footing completely, with AUD/USD recovering more than 100-pips from fresh cycle lows reached at 0.7217 levels in the Asian session.
The Aussie staged a solid come back following the comments from RBA Lowe noting that he sees the AUD level supporting economic growth while he doesn’t expect further rate cuts giving the rising household debt levels.
Earlier in Asia, the Aussie was hammered after the PBOC lowered the yuan reference against the US dollar by 1.6% for the second time in two consecutive days.
China remains Australia's biggest trading partner. With the devaluation of the Chinese currency, Chinese companies will have less purchasing power to purchase products from Australia.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7367 (July 1 High). levels, above which gains could be extended to 0.7441 (Aug 11 High). On the flip side, support is seen at 0.7279 (Aug 11 Low) levels from here it to 0.7217 (Today’s Low).
AUD/USD rises from 0.7250 levels
Currently, the AUD/USD pair trades 0.73% higher at fresh session highs of 0.7359, heading towards 0.7400 levels. The AUD bulls jumped back into the bids and regain lost footing completely, with AUD/USD recovering more than 100-pips from fresh cycle lows reached at 0.7217 levels in the Asian session.
The Aussie staged a solid come back following the comments from RBA Lowe noting that he sees the AUD level supporting economic growth while he doesn’t expect further rate cuts giving the rising household debt levels.
Earlier in Asia, the Aussie was hammered after the PBOC lowered the yuan reference against the US dollar by 1.6% for the second time in two consecutive days.
China remains Australia's biggest trading partner. With the devaluation of the Chinese currency, Chinese companies will have less purchasing power to purchase products from Australia.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7367 (July 1 High). levels, above which gains could be extended to 0.7441 (Aug 11 High). On the flip side, support is seen at 0.7279 (Aug 11 Low) levels from here it to 0.7217 (Today’s Low).