AUD/USD off earlier gains

FXStreet (Edinburgh) - The Aussie dollar is retreating from 4-week highs in the boundaries of 0.9080 overnight, taking the AUD/USD back to the 0.9040/45 area.

AUD/USD boosted by RBA

The central bank commanded by G.Stevens extended its more hawkish views of the domestic economic prospects, prompting investors to rule out another rate cut for the moment and thus supporting the AUD. According to strategists at UBS, “In the meantime, short-term income gains from exports but without an exaggerated upward currency effect is beneficial for a labour market seeking to recover competitiveness and productivity. A ‘period of stability’ for RBA rates would help maintain this ‘sweet pot’”.

AUD/USD key levels

At the moment the pair is up 0.15% at 0.9044 with the next resistance at 0.9080 (high Feb.18) ahead of 0.9087 (high Jan.13) and finally 0.9152 (high Dec.11). On the flip side, a breakdown of 0.9000 (psychological level) would target 0.8942 (low Feb.11) and then 0.8907 (low Feb.10).

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