Australian Dollar: How are RBA hike hopes lifting AUD against US Dollar? - Societe Generale

AUD/USD is holding above 0.7000 ahead of the Reserve Bank of Australia's (RBA) policy decision, following a rebound from a multi-month ascending trend line near 0.6900, Societe Generale strategists note. Resistance lies at 0.7050/0.7080; clearing the 200-day moving average could give the recovery added strength. A break below 0.7000, however, could open the way for further declines towards 0.6900 and 0.6860/0.6830.

Can AUD/USD clear resistance ahead of the RBA decision?

"Spot steadies above 0.70 handle ahead of RBA decision tomorrow."

"AUD/USD has bounced after defending a multi-month ascending trend line near 0.6900."

"The pair has reached the confluence of the 50-DMA and the 200-DMA at 0.7050/0.7080, which represents an interim resistance zone."

"All else being equal in stocks and metals, an upgrade should in theory be a fillip for AUD/USD and nudge the pair back above the 200dma (0.7066)."

"It will be important to observe whether it can overcome this hurdle. Last week's low at 0.7000 is the first support. A break below this could trigger a deeper down move."

"In that scenario, the next supports could be located at the ascending trend line near 0.6900 and the March low at 0.6860/0.6830."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)