The AUDUSD pair is moving higher today.
The Reserve Bank of Australia kept interest rates unchanged:
The Reserve Bank of Australia (RBA) was the latest central bank to announce its policy target when it left the cash rate unchanged at 4.35% in September 2024, as expected. The central bank noted that current policy remains restrictive and working as expected, but the outlook remains uncertain. Inflation remains above the 2-3% target range, and bringing it back towards target is the RBA’s priority. The bank stressed that policy will need to remain restrictive until inflation moves sustainably towards target. The RBA remains committed to taking action to control inflation and is leaving options open for future policy moves.
Chinese stimulus is also contributing to the bullish bias (as is the dollar selling today on the back of weaker data today).
Technically, the price closed above the 61.8% level of the move down from the January 2023 high to the October 2023 low after three days of trading above and below the level but declining at the close.
Today’s low is 0.6814, just 4 pips below the major correction level before the uptrend started in today’s trading.
Technically, the price also moved above the high recorded at the end of December at 0.6871 today. This represents a major breakout, and if it holds, it gives buyers the green light to move higher.
Having said that, the next upside target comes above and below the 0.6900 level which was home to the swing highs from June and July of last year (see chart below). The “double top” makes this a tough sell.