It was a dull week for AUD/USD in terms of price action, as, after gapping lower at the opening, it is closing it unchanged in the 0.7610 price zone. Resilient Australian economy is set to keep providing support to the aussie, Valeria Bednarik, Chief Analyst at FXStreet, reports.
Key quotes
“Australian resilience to the ongoing global crisis is an upward factor for the aussie, as the country keeps controlling COVID-19 contagions. Just this week, news came out that a case was detected in a hotel worker, resulting in a five-day lockdown in the Pert area. On Friday, the country reported just six new cases, all of them quarantined in hotels.”
“The main event in Australia was the Reserve Bank of Australia monetary policy decision. As widely anticipated, policymakers left the official cash rate at 0.1%, while policymakers reiterated that rates wouldn’t be hike until inflation reaches the central bank’s target. Additionally, the central bank announced it would extend its QE program, with additional bond purchases at a $5 billion pace per week, once the current program ends in three months.”
“Weekly basis, lower lows and lower highs suggest that the pair will keep on falling. Technical readings indicate that, while the momentum keeps receding, bulls are still holding the grip.”
“At this point, 0.7640 is an immediate resistance level, en route to the 0.7700 figure. Gains beyond this last seem unlikely at this point. The main support is the weekly low at 0.7563, with a break below it exposing December 21 low at 0.7461.”
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