AUD/USD: RBA keeps interest rates unchanged
Central bank cites ‘highly uncertain’ outlook, will continue ‘to do what it can’.
AUD/USD Technical analysis, overview, strategies, and levels
Losses suffered yesterday in the Australian dollar have mostly been undone by this morning, with the focus on the Reserve Bank of Australia's monetary policy announcement, which as expected kept interest rates unchanged, in its statement saying that although the 'worst of this contraction has now passed, the outlook remains highly uncertain' and that it remains 'committed to do what it can to support jobs, incomes and businesses'. Elsewhere Australia’s trade surplus grew but by a smaller than expected amount with its previous revised lower, while retail sales beat estimates. AIG's construction data and Chinese services data out of Caixin will be released tomorrow.
From a technical standpoint, its bull trend technical overview has been stalling heavily at these levels, not just on consecutive declines but also a lack of follow through on days where it manages to best what has been a USD in relative retreat in the FX market. That has meant conformist overview strategies have been tested on a lack of momentum beyond its 1st Resistance level, and enticing contrarian strategies as well as range-traders hoping AUD/USD’s price will remain relatively rangebound within the 0.7050-0.7200 levels.
IG client* and CoT** sentiment for AUD/USD
In sentiment, there’s been no change in what has been majority short bias for retail traders, with longs enticed on closing out on the move up towards 0.72 and shorts initiated at lower price levels awaiting further retracement. CoT bias according to the latest report out of the CFTC shows a shift back to majority short bias after a brief stint in the middle on an increase in AUD shorts by 5,431 lots outdoing a 624 lot increase in AUD longs.
AUD/USD Chart with retail and institutional sentiment
*The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am.
Be sure to request IG’s Weekly & Daily Market Report when you open an account with IG Dubai and get access to the full information on the FX majors, commodities, indices, and Bitcoin.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
