FXOpen
The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Wednesday during the Asian session, dragging the price of AUDUSD to less than 0.7600 as bears go for a short-term correction. The technical bias remains bullish because of a Higher Low in the recent downside move.
Technical Analysis
As of this writing, the pair is being traded near 0.7579. A support may be noted around 0.7500-0.7485, the confluence of a major horizontal support as well as the intraday low of yesterday ahead of 0.7418, the swing low of the latest major downside move as demonstrated in the daily chart given below.
On the upside, the pair is likely to face a hurdle near 0.7637, the intraday high of yesterday ahead of 0.7676, the swing high of the latest major upside rally and then 0.7700, the psychological number. The technical bias will remain bullish as long as the 0.7420 support area is intact.
RBA Monetary Policy
The Reserve Bank of Australia has cut the official cash rate to an unprecedented 1.5 per cent to maintain a downward pressure on the currency and spur sluggish inflation and business investment. As was forecast by most analysts, the board lowered the cash rate by 0.25 of a percentage point from 1.75 per cent on Tuesday. Reserve Bank governor Glenn Stevens said in a statement that “the likelihood of lower interest rates exacerbating risks in the housing market has diminished”. The RBA statement said supervisory measures have strengthened lending standards in the housing market.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair on dips still appears to be a good strategy in short to medium term.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Market Insights with Gary Thomson: Where Are Oil, Gas & Global Indices Heading?
In this video, we’ll explore the key economic events and market trends, shaping the financial landscape. Get ready for insights into financial markets to help you navigate the week ahead. Let’s dive in!
In this episode of Market
Netflix (NFLX) Shares Pull Back After a 30% Surge
On 21 January, while analysing the NFLX chart, we:
→ identified a descending channel and a resistance zone around the $100 level;
→ noted that Netflix shares were showing a sustained downtrend. Selling pressure had been triggered primarily by reports of a
US Dollar Index (DXY) Rises Above the 100 Level
Today the US Dollar Index (DXY) climbed above the psychological 100 mark for the first time in 2026, supported by a tense fundamental backdrop, with the military conflict in the Middle East acting as the main driver.
→ Financial market participants