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Our free forex signals service today looks at the AUD/USD and we have the entry, stop and take profits levels for you.

The Reserve Bank of Australia has decided to maintain its 0.10 cash rate target as of today. So what triggered the 40-pip jump in AUD/USD after the meeting?

In light of the announcement that the RBA would reduce the number of weekly purchases of assets to 4 billion AUD, traders saw an opportunity. Purchases are currently at 5 billion Australian dollars per week.

The story does not end here, however. Due to concerns about the COVID delta variant, Australia has been on lockdown since July. In turn, Australia’s bonds continued falling, halting the local economic growth.

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Additionally, many investors speculated that the RBA would not reduce the weekly asset purchase. As a result, the RBA continued to cut the weekly purchases to billion dollars until September. Thus, from there, the pair rose to their new high.

CDC (Centers for Disease Control) defines the Delta variant as a more severe threat, so AUD/USD bulls may slow their pace.

Furthermore, disappointing PMIs from the US and China and tough rental market data may dissuade bulls.

The direction of DXY is important to note. It is hovering around 92 points, which is neutral. However, the S&P 500 gained 0.18% at the start of the week, which is a good sign for the DXY.

AUD/USD traders will monitor triggering factors for a new surge in the new policy announcement following the initial reaction to it.

It is unclear how the future will pan out, however. Covid has forced China to put millions on lockdown due to its increasing number of cases.

AUD/USD free forex signals

AUD/USD free forex signals
AUD/USD 4-hour price chart

Instrument: AUD/USD
Entry price: 0.7419
Stop Loss: 0.7326
TP1: 0.7541

Recommended Risk: 1%
Risk / Reward Ratio: 1:3

Signal validity period: Good until cancelled

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