The Reserve Bank of Australia has decided to keep rates unchanged, as expected by the market. However, the central bank sounded slightly more bullish than anticipated. It said that it expects higher growth to resume in Q4 and that economic growth will be around 3 % over the next few years. Inflation still remains low, but the RBA thinks that it will rise above 2 % this year.
The Australian Dollar rose following the announcement. AUD/USD rallied from 0.7640 to 0.7680 and AUD/NZD from 1.0380 to 1.0420. The outlook for AUD/USD remains bullish and resistance at 0.77 should not be difficult to overcome. However, stronger resistance is then seen in the 0.7780-0.78 area.
The Euro declined in Asia amid fear of political risks. EUR/USD opened around 1.0750 in Asia and fell to 1.0705 later in the session. Should 1.07 support break, the next notable level is seen at 1.0620.
IC Markets is revolutionizing on-line forex trading; on-line traders are now able to gain access to pricing and liquidity previously only available to investment banks and high net worth individuals.