Forex Market Analysis - AUD/USD drops 15+ pips after RBA’s inaction
1. AUD/USD fails to increase the previous recovery moves after RBA.
2. The Australian central bank left financial policy unchanged, downgraded Inflation, unemployment forecast.
3. Markets portray risk reset following WHO’s the refrain to back United States allegations on China.
AUD/USD drops to 0.6440 after the RBA left its financial policy unchanged on early Tues. The reason for the Aussie pair’s declines might be derived from the central bank’s beat forecasts of inflation and state. Ahead of the RBA decision, Australian treasurer josh Frydenberg aforesaid that his government can still do what’s necessary to support the economy. However, the policymaker didn’t give any clear hints concerning the possible financial support.
Earlier throughout the day, Australia’s AiG Performance of Construction Index and also the Commonwealth Bank’s activity numbers written beat figures. Elsewhere, the Australian Bureau of Statistics recently revealed the weekly Australian payroll jobs and wages information. As per the main points, the whole worker jobs ablated by 7.5% whereas the whole wages paid by employers slipped by 8.2%.
Even so, the Aussie pair cheered the danger rest following the World Health Organization’s (WHO) comments that it didn’t receive any proofs from the Washington that backs the United States claims that experiments in China’s Wuhan laboratory are the explanation behind the outbreak.
Moving on, traders can keep eyes on the main points of economic projections type the Aussie central bank, also as trade/virus updates, for recent impetus.
Technical analysis
On the hourly chart, AUD/USD extends its pullback from 61.8% Fibonacci retracement of late-April upper side whereas staying positive on top of 200-HMA. Though, 38.2% Fibonacci retracement level around 0.6450 appears to protect the immediate upper side before shifting the market’s attention to 100-HMA, at 0.6478 now. Meanwhile, 0.6410 level comprising 50% Fibonacci retracement can give a close-by rest throughout the pair’s turnabout before the key Fibonacci support near to 0.6370.