AUD/USD Keeps Bullish Bias as RBA Maintains Rates
Ming Lam May 5, 2020 7:29 AM
The Australian dollar is turning up following a four-session consolidation...
As expected, the Reserve Bank of Australia has just kept its key interest rate unchanged at 0.25%.
Also, the central bank reiterated its commitment to maintain the 3-year government bond yield at 0.25%.
Like its counterparts in advanced economies which have been severely dragged by the coronavirus pandemic, the RBA has pledged accommodative measures to support jobs, incomes and businesses during this difficult period.
Regarding economic forecast, RBA Governor Philip Lowe said Australia's GDP would shrink 10 in the first half of 2020, and contract 6% over the whole year.
Australian Treasurer Josh Frydenberg pointed out that the country's coronavirus-related lockdown is costing the economy A$4 billion per week.
In fact, Australia is relatively successful in containing the pandemic. It has reported over just over 6,800 coronavirus cases with less than 100 related deaths.
Meanwhile, authorities are discussing an earlier-than-aticipated lifting of restrictions across the country.
The Australian dollar is turning up following a four-session consolidation.
On a Daily Chart, AUD/USD is maintaining a Bullish Bias.
It has managed to stay above the ascending 20-day moving average, which stands above the 50-day one.
Key Support remains at 0.6270, while Overhead Resistance is expected at 0.6685 and 0.6850.
Source: GAIN Capital, TradingView
On an Intraday (30-Minute) Chart, AUD/USD is showing upward momentum while breaking above the upper boundary of a Bullish Channel.
Technical indicators such as 20-period, 50-period moving averages and relative strength indicators are so well directed as to favor a continued Bullish Bias.
Upon reaching 0.6470 on the upside, the next Overhead Resistance at 0.6495 will be exposed.
Only a return to the Key Support at 0.6420 would call for a bearish reversal.
Source: GAIN Capital, TradingView
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