The Australian dollar traded higher today after the latest minutes meeting from the RBA provided no clear guidance on the state of the Australian economy.
At 8.24pm (GMT) the Aussie dollar was trading at US72.60c up from US72.48c in yesterday’s trade.
The currency rallied as high as US73c after the news but then pulled back as the market digested the news of a potential interest rate cut from the RBA with traders now pricing a 30% chance of a move next month and a 60% chance of a cut in December.
The Australian dollar now seems to have found strong support at the US72.5c mark with strong resistance coming at the US72.50 c level, and with no significant news out of Australia the currency will be driven by external factors.
From a sentimental point of view the Aussie has made several runs towards the US73c mark after good numbers out of China and weak data out of the US followed by a quick retreat showing that there is a negative bias towards the currency.
In fact many analysts are calling this a dead bounce and there may be a few more runs towards critical US73c level, but heading towards the end of the year the Australian dollar is expected to land below the US70c mark.
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