The Australian Dollar (AUD) extended moves higher to start the week against the US Dollar (USD) reaching 0.6890- the 3rd week it has outperformed the greenback from the low of 0.6625 in early September. The RBA held their cash rate as we expected at 4.35% Tuesday as widely expected initially sending the AUD lower before markets pushed the antipodean currency higher post the central bank statement releasing. The RBA maintained their “hawkish” stance by saying the labour market remains strong and inflation still has a way to go. Also boosting the AUD was a massive Chinese economic boost to revive household spending and real estate demand. Today’s Australian inflation read y/y 1.30pm NZT should drop from 3.8% and will give us more swings in the pair. Taking out this currency risk by buying USD prior would be a good plan.
Current Level: 0.6895
Resistance: 0.67000
Support: 0.6800
Last Weeks Range: 0.6688- 0.6838