AUDUSD managed to rebound from 2003 lows that hit in early European session after the Reserve Bank of Australia (RBA) cut the cash interest rate by 25 basis points to record low 0.25%. Reserve Bank of Australia said that it would not increase rates until the economy approaches the ‘full employment’ level. Above that, RBA will buy government bonds and set a funding facility to provide credit for small & medium-sized businesses.
On the data front, the Aussie employment report beat expectations. The Australian Employment rose by 26,700 in February topping the forecasts of 6,700; the unemployment rate fell to 5.1% from 5.3%.
The United States Philadelphia Fed Manufacturing Survey came in at -12.7, below the forecasts of 10 in March. The Initial Jobless Claims rose to 281K in the week ending March 14 above the expectations of 220K. Meanwhile, the Fed is focused on ensuring liquidity and proper market function.
AUDUSD is 1.35% higher at 0.5857 as the buyers managed to run an impressive rebound from 2003 lows. The technical analysis outlook is bearish despite today’s bounce and the upwards move would consider a selling opportunity.
On the upside, first resistance for the AUDUSD stands at 0.5964 the daily high. Next resistance level stands at 0.6018 the high from yesterday’s session. The next supply zone for AUDUSD would be reached at 0.6152 the high from March 17.
On the other side, immediate support for the pair will be met at 0.5508 the daily low, while a move below might test the 0.5450 pshcyological mark.