Market Update: AUD moves higher after RBA minutes
Hi traders, today the AUD reversed a soft start to the USD and JPY after the RBA meeting minutes set up some buyer confidence.
September’s monetary policy stopped short of signalling further cuts while the NZD held steady. The minutes showed the RBA will maintain its “highly accommodative settings” as long as needed and will continue to consider how further policy measures could support the economy, however, the minutes stopped short of indicating if policy action was imminent. Interestingly enough, interest rate futures are still basically pricing in a 15 basis point rate cut in October.
After the meeting minutes, the AUD gained 0.77% to the USD and 0.72% to the JPY, currently, price is seeing a small pullback.
Looking at the daily charts;
AUDUSD – while price remains above support and holds above the main trendline price remains bullish and continues to hold its trend. Buyers hit new weekly highs and new 2-week highs today. The worry is if we see price fail to hold today’s rally and pull back into the range. To show buyers remain in control we would like to see price close above 0.7290/95.
AUDJPY – price broke the longer-term trend but buyers have followed it up with two new higher lows. Price remains in its range so we would like to see a bit more from buyers to show they hold control and are looking to push price higher. 77.40 area is range resistance and a level that we would like to see closed above to show buyer momentum.