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COZfx: AUD posts strong gains as RBA kept its interest rate

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COZfx: AUD posts strong gains as RBA kept its interest rate

Postby dwang » Wed May 07, 2014 2:17 am

COZforex: The Australian dollar surged after the Reserve Bank of Australia held the cash rate at a record low 2.5% as widely expected in its latest board review on Tuesday.

Governor Glenn Stevens emphasized continued accommodative policy while warning that the exchange rate remains high by historical standards.

"The decline in the exchange rate from its highs a year ago will assist in achieving balanced growth in the economy, but less so than previously as a result of the rise over the past few months. The exchange rate remains high by historical standards," Stevens said.

"Looking ahead, continued accommodative monetary policy should provide support to demand, and help growth to strengthen over time. Inflation is expected to be consistent with the 2%–3% target over the next two years.

Earlier, Australia's March trade balance reported a surplus of a$713 million, compared to an expected surplus of a$1.2 billion.

In technical analysis, COZforex senior currency strategist Ian • Quigley said, AUD/USD is predicted to find support at 0.9259, and a drop through could take it to the next support line of 0.9233. Meanwhile, the pair is predicted to find its first resistance at 0.9302, and a rise through could take it to the next resistance line of 0.9319.

In commodities, LME Copper prices dropped 0.8% or $56.5/MT to $6699.0/MT. Meanwhile, Aluminium prices dropped 0.3% or $6.0/MT to $1736.5/MT.


(COZ forex UK)
dwang
 
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Joined: Wed Mar 13, 2013 6:24 am

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