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AUD/USD rushes higher on RBA Rate Statement

© Dukascopy Bank SA
"We believe that the prospect of another year of GDP growth of closer to 2% than 3% in 2016 will prompt the RBA to cut interest rates to 1.5% next year."
- Capital Economics (based on WBP Online) 


Pair's Outlook 
The AUD/USD slightly overperformed and closed trade at 0.7226 yesterday, rather than the expected 0.7210 level. As a result, the Aussie broke out of the one-year long down-trend, whereas today's rally due to RBA leaving rates unchanged is likely to ensure that breakout. As of now the immediate resistance, represented by the weekly R1, was pierced, but the US fundamentals could still push the exchange towards that area. The 0.73 major level along with the Bollinger band managed to limit upside volatility and should be the ceiling for today's trade. 

Traders' Sentiment 
Market sentiment remains bullish, but at 73% (previously 74%), while the share of sell orders edged higher today, from 52 to 67%.
© Dukascopy Bank SA


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