RBA keeps the pressure on AUD/USD

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The Reserve Bank of Australia left its interest rates unchanged at 1.5%, as widely expected. However, they seem to have upgraded their rhetoric regarding the strength of the Australian dollar.

The team led by Phillip Lowe stated that a rising A$ would slow down the economy and that it is restraining price measures. They are trying to talk down the Aussie and it is easier to hit it when it’s down.

On other topics, they said that despite strong employment, there has been slow growth in wages. What about housing? They note that conditions are easing in Sydney’s housing market.

AUD/USD reached a new low of 0.7785, but continues sticking to 0.78, trading around 0.7815 at the time of writing. Further support awaits at 0.7715, if 0.7785 is breached. The next lines are 0.7635 and 0.7565. Resistance awaits at 0.7860 and 0.7940.

The drop in AUD/USD is also related to the US dollar’s strength. The greenback continues rising. Yesterday, it got a boost from an upbeat number on the ISM Manufacturing PMI.

Here is the hourly chart.

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Yohay Elam – Founder, Writer and Editor
I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me.

Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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