AUD/USD is getting closer to the 0.80 level, reaching a high of 0.7985 but showing a lot of hesitation. Can the RBA keep talking it lower for much longer?
The Australian economy is doing quite well. Growth and jobs are less reliant on the mining sector and things are going quite well. Nevertheless, the economy could do even better had the exchange rate been lower. The fresh announcement ties the strength of the A$ to inflation, growth, and jobs.
That is the message from RBA Governor Phillip Lowe in the recent rate statement. It seems to hold the Aussie down despite the strength of the economy.
What’s next? A lot depends on the GDP read. Australia publishes its numbers only once per quarter and it happens early on Wednesday. Expectations stand at a quarterly growth rate of 0.8%. Can 0.80 continue capping the pair if 1% q/q is achieved? Probably not.
More: AUD/NZD technical setup
In any case, resistance above 0.80 appears at 0.8065, followed by 0.8165. Support is at 0.79.
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