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11 May 2015
AUD/USD back above 0.79
FXStreet (Mumbai) - The AUD/USD extended the recovery to trade above 0.79 handle, as the Aussie benefits via the spike in demand in the AUD/NZD cross.
AUD ignores China rate cut, NZ rate cut talks support
The 25 basis points rate cut announced by PBOC on Sunday failed to strengthen the Australian dollar. The AUD/USD dropped to a low of 0.7875 as the rate cut trade did not materialize. However, the pair managed to recover to 0.7906 on buying in the AUD/NZD cross.
Moreover, the yield play is at work in the AUD/NZD cross, after the Kiwi fell to two-month lows against the American dollar on heated speculation of RBNZ rate cut as early as next month.
AUD/USD Technical Levels
The immediate resistance is seen at 0.7915 (hourly 200-MA), above which the pair could rise to 0.7966. On the flip side, a break below 0.7875 could push the pair down to 0.78 levels.
AUD ignores China rate cut, NZ rate cut talks support
The 25 basis points rate cut announced by PBOC on Sunday failed to strengthen the Australian dollar. The AUD/USD dropped to a low of 0.7875 as the rate cut trade did not materialize. However, the pair managed to recover to 0.7906 on buying in the AUD/NZD cross.
Moreover, the yield play is at work in the AUD/NZD cross, after the Kiwi fell to two-month lows against the American dollar on heated speculation of RBNZ rate cut as early as next month.
AUD/USD Technical Levels
The immediate resistance is seen at 0.7915 (hourly 200-MA), above which the pair could rise to 0.7966. On the flip side, a break below 0.7875 could push the pair down to 0.78 levels.