AUD/USD made a very nice comeback, that ended only after it got close to the upper end of the downtrend channel. The pair already managed to recapture the channel before the decision, and climbed higher afterwards.
However, the 1.0236 line is still fought over.
The RBA had enough reasons to the cut the rates: some signs of weakness from Australia and China, as well as a desire for a weaker AUD probably weren’t enough. The Australian central bank left the rate unchanged and didn’t change the forward looking statement. While “there is a scope for easingâ€, this was the wording also last month.
AUD/USD broke to 8 month lows beforehand, falling below the all important 1.0150 line, but recovered relatively quickly and got back to the downtrend channel. A break above downtrend resistance would certainly be a bullish sign. 1.0287 and 1.0350 are resistance lines, while support is still at 1.0150 before parity.
The next big event for AUD/USD is just around the corner: see how to trade the Australian GDP with AUD/USD.
