Aussie Jumps as RBA Chief Says Currency Not Overvalued

On an Intraday 30-minute Chart, AUD/USD is rebounding from a low of 0.6805...

FOREX 3

Reserve Bank of Australia Governor Philip Lowe stated in a conference: "I think it is likely that we are going to see interest rates at their current level for years."

Regarding the Australian dollar, Lowe said: "I would like a lower currency at some point (...) but at the moment, I think it is really hard to argue the Australian dollar is overvalued."

He cited relatively better health and economic outcomes from the coronavirus impact, and strong commodity prices.

Meanwhile, investors are concerned about a second-wave of the coronavirus pandemic. In Victoria, Australia's second-most populous state, another 19 cases were confirmed Sunday, taking the number of new cases in the state to 160 over the past week. Authorities have extended a state of emergency by four weeks to July 20


On an Intraday 30-minute Chart, AUD/USD is rebounding from a low of 0.6810.


Source: GAIN Capital, TradingView


It is currently striking against the Upper Bollinger Band calling for acceleration to the upside.

And strong upward momentum is evidenced by the relative strength index, which is well directed above 50.

Riding on a continued rebound, the pair is expected to encounter Upside Resistance at 0.6875 and 0.6910 (around the high of last Friday).

Alternatively, a return to the Key Support at 0.6810 would open a path toward 0.6775 on the downside.


More from AUD

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.