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AUD/USD Rallies to 0.7390 After RBA Left Interest Rate Unchanged

Posted by Chris Advincula on Aug 4, 2015 6:29:00 AM

The Reserve Bank of Australia left their benchmark interest rate  unchanged at 2.00% as expected which initially drove the australian dollar higher to 0.7330 from 0.7290 (+40 pips) against the dollar. (4:30 GMT) Further buying interest resumed in Europe which pushed the aussie dollar even higher to the intraday high of 0.7392 (+102 pips from 0.7290).

The RBA's accompanying statement: "The board today judged that leaving the cash rate unchanged was appropriate at this meeting. Further information on economic and financial conditions to be received ahead will inform the board's ongoing assessment of the outlook and whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target."

Economists say that the central bank appears to have placed their easing policy on hold for now while the interest rates may be kept unchanged for the next few months, given the unfolding capex cliff issue with a watchful eye on the unemployment or lower core inflation.

Resistances: 0.7400, 0.7420, 0.7439, 0.7450, 0.7470

Supports: 0.7355, 0.7345, 0.7330, 0.7330, 0.7300

AUD.8.4 resized 600 

Chart: WorldWideMarkets Alpha Trader

Topics: RBA, AUDUSD, forex trading, European Session, Reserve Bank of Australia, Interest Rate, Fundamental Analysis

 

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