AUD/USD trades above 0.7400 for the first time since August 2018 today
And the upside run could still have legs, as the dollar finds itself in a really tough spot, and more so since the RBA did not offer any offending remarks to aussie buyers.
A couple of takeaways from the RBA decision earlier:
- The RBA will do ‘whatever it takes’ to sustain the economic recovery
- The RBA may consider other monetary policy options moving forward, but steers clear of any firm negative rates talk for now
- Current easing stance to stay in place for an extended period of time
- No specific mention of any dissatisfaction with how the AUD is performing
With regards to the aussie, this was the paragraph to take note of:
The US dollar has depreciated against most currencies over recent months. Given this and higher commodity prices, the Australian dollar has appreciated, to be around its highest level in nearly two years.
There is a nod to the aussie’s rise to two-year highs but that’s basically it.
From a technical perspective, AUD/USD is still looking perky upon a break of the 200-week MA (blue line) from last week and buyers are now contesting a break above the December 2018 high @ 0.7394.
Keep above that and 0.7400 and the next key target will be the 0.7500 level.
With the dollar looking fragile and the RBA continuing to signal the all clear, there is a strong argument for AUD/USD to keep pushing higher moving forward.