7 Apr 2015
AUD/USD finds support at 0.7625
FXStreet (Córdoba) - AUD/USD jumped during the Asian session after the Reserve Bank of Australia left rates unchanged and peaked at 0.7711 but then pulled back. On European hours extended the retreated as the US dollar strengthened across the board.
The decline from the highs found support at 0.7625. From there the pair is recovering and currently it hovering around 0.7650, up 65 pisp from yesterday’s closing price.
The central bank left rates at 2.25% and affirmed that it could ease policy if it considers appropriate. “A new line in today’s statement is the pick up in lending to businesses, which we think is a nod to the February rate cut as having worked. Also the RBA has removed reference to the AUD being above ‘fundamental value’ consistent with RBA papers from the end of Feb that revealed the RBA believed the AUD near US$0.7650 was near fair value. We believe the market will move towards pricing in a May cut (our base case) but today’s statement suggests this is not necessarily a done deal”, explained analysts from TD Securities regarding RBA statement.
The decline from the highs found support at 0.7625. From there the pair is recovering and currently it hovering around 0.7650, up 65 pisp from yesterday’s closing price.
The central bank left rates at 2.25% and affirmed that it could ease policy if it considers appropriate. “A new line in today’s statement is the pick up in lending to businesses, which we think is a nod to the February rate cut as having worked. Also the RBA has removed reference to the AUD being above ‘fundamental value’ consistent with RBA papers from the end of Feb that revealed the RBA believed the AUD near US$0.7650 was near fair value. We believe the market will move towards pricing in a May cut (our base case) but today’s statement suggests this is not necessarily a done deal”, explained analysts from TD Securities regarding RBA statement.