Back
20 Apr 2015
AUD/USD surges well above 0.78 on China's RRR cut
FXStreet (Bali) - AUD/USD has surged in interbank trading, printing a session high of 0.7840 before retracement some of its sizeable gains towards 0.7820, wich still represents a boost of over 40 pips from the last NY close at 0.7780, following weekend news that China has decided to cut its RRR for all banks by 1%.
View from Valeria Bednarik, Chief Editor at FXStreet
The Chinese news over the weekend may favor the upside, particularly considering the considering the imbalance between both economies' data and rates, as investors have scale back expectations for a RBA rate cut next month."
"Technically the 4 hours chart shows that the price has broken well above its 200 EMA last week, currently around 0.7705, whilst the 20 SMA crosses it towards the upside, reflecting a strong upward momentum, whilst the technical indicators are barely retreating from extreme overbought levels."
"The pair has stalled several times in the mentioned 0.7840 price zone, now a critical static resistance level, as a break above it should favor a 100 pip rally towards March high, set at 0.7937."
View from Valeria Bednarik, Chief Editor at FXStreet
The Chinese news over the weekend may favor the upside, particularly considering the considering the imbalance between both economies' data and rates, as investors have scale back expectations for a RBA rate cut next month."
"Technically the 4 hours chart shows that the price has broken well above its 200 EMA last week, currently around 0.7705, whilst the 20 SMA crosses it towards the upside, reflecting a strong upward momentum, whilst the technical indicators are barely retreating from extreme overbought levels."
"The pair has stalled several times in the mentioned 0.7840 price zone, now a critical static resistance level, as a break above it should favor a 100 pip rally towards March high, set at 0.7937."