AUDUSD Stalls At 0.6929 for Fourth Consecutive Day, Intraday Support at 0.69

AUDUSD trades 0.40% higher after Reserve Bank of Australia kept the interest rate on hold at a record low 0.75%. RBA has already cut rates three times and sounded cautiously optimistic today, pointed out that a turning point appears to have been reached.

The pair failed earlier today to break above the three-month highs at 0.6929 for fourth day in arow; The bullish momentum gained traction after the pair pierced above the 100-day moving average getting a boost from the interest rate cut from Fed and the positive news on the US-China trade negotiations. Investors also cheered the positive Brexit deal developments as UK is heading for general election in December.

On the data front, yesterday the ANZ Australian Job Advertisements fell to -1.0% m/m in October following a gain of 0.3% m/m in September. Job Advertisements are now 11.4% lower than a year ago. Australia Retail Sales s.a. (month over month) came in at 0.2% in line with expectations in September. Australia TD Securities Inflation (month over month) remained unchanged at 0.1% in October.

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AUDUSD Resistance and Support

AUDUSD failed to make fresh three-month highs and turned lower close to the 0.69 support mark. AUDUSD short term outlook remains bullish for now despite the rejection at 0.69296; The rebound from 10-year lows gained traction above the 50 and 100-day moving average that now provides a safety net for the Aussie.

On the downside, first support for AUDUSD stands at 0.6763 the today’s low and then at 0.6849 the 100-day moving average, while more bids will emerge at 0.6802 the 50-day moving average. A sustained move below will open the way for a visit down to 10-year lows. On the flip side, first resistance stands at 0.6927 today’s high and then at 0.6952 the 200-day moving average. A break above might signal a move to the next hurdle at 0.70 the high from July 24th.Download our latest quarterly market outlook for our longer-term trade ideas.

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