AUD/USD has spiked around 10 pips on the 5-min charts on the RBA minutes and currently, the 20 March AUDUSD Fundamental Drivers Forecast shows the pair trading at 0.7712, down -0.07% on the day, having posted a daily high at 0.7722 and low at 0.7698. What is more?
20 March, GKFX – RBA minutes repeats rising AUD would slow economy and a pick up in inflation. The low rates are playing a part in lowering unemployment, lifting inflation and the RBA repeats that further progress on policy goals likely to be only gradual.
AUD/USD bulls remain resilient to trade war angst
As for price action overnight, the commodity sector copper and iron-ore dived and took the Aussie on the offer for a temporary phase, but the bulls stuck to their game plan despite the trade war angst and rallied from the dip below the 0.77 when the DXY sold off to below the 90.00 handle (yields slide). AUD/USD made a high of 0.7725 and a close of 0.7709.
20 March AUDUSD Fundamental Drivers Forecast
Technicals stay better bearish though with negative RSIs and the price changing hands below the 200-D SMA at 0.7803. 0.7700 was taken out overnight but profit-taking back towards 0.7760 could be on the cards. 0.7625 could be the alternative scenario on a break of 0.7686 recent lows. Valeria Bednarik, chief analyst at FXStreet explained that, technically, the risk remains skewed to the downside according to the 4 hours chart:
“Indicators have barely bounced from extreme oversold readings, while the 20 SMA maintains a sharp bearish slope well above the current level.”
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