Chart: WorldWideMarkets Alpha Trader
The Australian Dollar fell to 0.7610 from 0.7638 (-28 pips) after the release of the RBA minutes from the March 3rd meeting. (00:30 GMT Tuesday) The policy makers said that they recognize the need for a further rate cut, however they have decided keep their interest rate on hold for the timebeing to foster sustainable growth while waiting on more developments of both economic and inflation data.
The minutes also showed a repeat rhetoric that the AUD is still high and a lower rate will help the economy. The RBA added that the labor market will remain sluggish with spare capacity.
Although the front headline of the minutes sounded dovish with a possible easing of monetary policy possibly as early as next month, traders simply took advantage of the cheap level to buy the Aussie. The Aussie rose to 0.7660 against the dollar from 0.7610 as the European market opened with buying interest and a short-covering rebound from the prior Asian session.
Economic analysts perdict that the RBA will most likely lower their cash rate by another 25 basis points around April.
Support: 0.7610, 0.7575, 0.7560-Mar 11 low
Resistance: 0.7670, 0.7683, 0.7695, 0.7710, 0.7730
Fibonacci Fan Retracement: 0.7632 (61.8%), 0.7638 (50%), 0.7645 (38.2%)