AUDUSD trades 0.58% higher at 0.6763, snapping three consecutive days of losses rebounding from daily lows at 0.6709. Improved sentiment ahead of trade talks between US and China in Washington helps Australian Dollar to reach four-day highs.
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’.
AUDUSD Technical Analysis
AUDUSD technical outlook has turned neutral today as the rebound from 10-year lows continues. The pair trades below all daily moving averages. On the upside now first resistance stands at 0.6766 today’s high and then at 0.6776 the 50-day moving average while next hurdle stands at 0.6865 the 100-day moving average. On the downside, first support for AUDUSD stands at 0.6709 today’s low, while more bids will emerge at 0.6701 the low from October 3rd session. A break below will open the way for a visit down to 10-year lows. Bulls need a break above the 50-day moving average to cancel the recent downtrend.