The RBA said Tuesday it is holding its benchmark cash rate fixed at 1.5 percent. More on this is discussed in the 5 December AUDUSD Fundamental Drivers Analysis.
5 December, OctaFX – The Australian dollar broke lower at the open on Monday, indicating that traders were beginning to get excited about tax reform in the United States, however, since then traders have bounced to fill the gap, and are waiting at the moment for the RBA statement. The Reserve Bank of Australia (RBA) held its trend-setting interest rate at a record low of 1.5%, where it has stood since mid-2016.
It has remained on the sidelines in support of economic growth and inflation. There is currently no timeline as to when policymakers will vote for higher interest rates. When you take a careful examination of this chart, you’d start wondering about tax reform, the RBA statement, and of course gold markets all with the same time.
5 December AUDUSD Fundamental Drivers Analysis
The Australian dollar rose after the RBA decision, with the AUD/USD exchange rate climbing 0.4% to 0.7643. The upside move came even as the near-term momentum indicators appeared mixed at the start of Tuesday trading.
The pair faces immediate support at the 0.7587 level, which also corresponds with the 21 SMA. On the opposite side of the ledger, AUD/USD has breached the 0.7627 and 0.7640 resistances. The next resistance test is likely to come at 0.7675.
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