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1 Sep 2015
AUD/USD spikes above 0.7150 as RBA keeps rate unchanged
FXStreet (Mumbai) - The Aussie jolted higher in the mid-Asian trades, in a knee-jerk reaction to the Reserve Bank of Australia’s (RBA) unchanged monetary policy stance with the cash rate held steady at record lows of 2.0%.
AUD/USD supported at 0.7102
Currently, the AUD/USD pair trades 0.42% higher at 0.7143, quickly fading a spike to 0.7150 levels post RBA decision. The bid tone around the AUD/USD increased after the Australian dollar was boosted by the central bank’s monetary policy decision, keeping cash rate on hold.
The RBA also noted that the future course of monetary policy outlook will be data dependent while the AUD level is adjusting to the recent commodity price actions.
Earlier this session, the Aussie was supported on the back of upbeat Aus building consents data while a better revision of the China PMI gauge also underpinned.
The Caixin China manufacturing PMI was revised up from 47.1 to 47.3 in August, after coming in at 47.8 in July. A reading below 50 signals a contraction in activity. Markets expected to see a revised reading of 47.2 in August.
Meanwhile, traders now look forward to a slew of US economic data to be released later in the US session amid broad based US dollar weakness as risk-off market profile continued to dominate.
AUD/USD Levels to watch
The pair has an immediate resistance at 0.7175 (Aug 31 High) levels, above which gains could be extended to 0.7207 (Aug 28 High). On the flip side, support is seen at 0.7096 (Aug 27 Low) levels from here it to 0.7051 (Aug 24 Low).
AUD/USD supported at 0.7102
Currently, the AUD/USD pair trades 0.42% higher at 0.7143, quickly fading a spike to 0.7150 levels post RBA decision. The bid tone around the AUD/USD increased after the Australian dollar was boosted by the central bank’s monetary policy decision, keeping cash rate on hold.
The RBA also noted that the future course of monetary policy outlook will be data dependent while the AUD level is adjusting to the recent commodity price actions.
Earlier this session, the Aussie was supported on the back of upbeat Aus building consents data while a better revision of the China PMI gauge also underpinned.
The Caixin China manufacturing PMI was revised up from 47.1 to 47.3 in August, after coming in at 47.8 in July. A reading below 50 signals a contraction in activity. Markets expected to see a revised reading of 47.2 in August.
Meanwhile, traders now look forward to a slew of US economic data to be released later in the US session amid broad based US dollar weakness as risk-off market profile continued to dominate.
AUD/USD Levels to watch
The pair has an immediate resistance at 0.7175 (Aug 31 High) levels, above which gains could be extended to 0.7207 (Aug 28 High). On the flip side, support is seen at 0.7096 (Aug 27 Low) levels from here it to 0.7051 (Aug 24 Low).