AUDUSD trades 0.07% higher for the third consecutive trading session at 0.6829, as the pair made yesterday a convincing break above the descending trendline which started back in July 2019 and above the 50-day moving average. Investors cheered the Brexit agreement and phase one of the trade deal between US and China. AUD is still under the bearish influence of the interest rate cut by RBA. AUDUSD hit 10-year lows after the Reserve Bank of Australia cut interest rates by 25 basis points to 0.75%. RBA left the doors open for further cuts in the future as the Australian economy is at “a gentle turning point”. Reserve Bank of Australia might cut to ‘support sustainable growth in the economy, full employment and the achievement of the inflation target over time’.
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AUDUSD Technical Analysis
AUDUSD technical outlook has turned neutral to bullish now for the short term as the rebound from 10-year lows gains traction above the 50-day moving average. The pair managed to break out of the descending trendline and now can look to higher levels. On the upside now first resistance stands at 0.6838 today’s high and then at 0.6857 the 100-day moving average while next hurdle stands at 0.6969 the 200-day moving average. On the downside, first support for AUDUSD stands at 0.6820 today’s low, while more bids will emerge at 0.6778 the 50-day moving average. A break below will open the way for a visit down to 10-year lows. Bulls now need a break above the 100-day moving average to cancel the recent downtrend and regain control.