AUD/USD (current price: 0.7625)
The Australian Dollar has been stable in the last few days as traders were preparing for today’s all important RBA rate decision. The central bank has cut rates recently, reacting to the weakness of the Asian economies, but the currency kept on drifting higher despite the monetary easing. The better than expected Current Account deficit, and the recent bullish data regarding the Australian economy might mean that the RBA will leave rates unchanged in 2016.
Our assessment: AUD/USD is back above the 0.76 level this morning, as the local central bank left the benchmark rate unchanged, with strong resistance ahead at 0.7750 and above that near 0.785.
