AUD/USD surges past 0.7350 level after RBA minutes

By FXStreet The AUD/USD pair jumped beyond the mid-point of 0.7300-0.7400 handle after minutes of the RBA’s latest monetary policy meeting dumped expectations of further rate-cuts in the near-term.

Earlier in May, the central bank surprised markets by lower its benchmark interest rates by 25bps to a fresh record low levels, citing concerns over slowing inflation. Moreover, the central bank also lowered its inflation forecast for the rest of 2016, which further fueled speculations of a further rate-cut in the near-term. However, the minutes revealed that the central bank seems more inclined to wait for further information before deciding to ease further as the central bank expects inflation to pick-up to 1.5%-2.5% by mid-2018.

The pair on Monday, held and rebounded from the very important 200-day SMA despite of weak Chinese economic data over the weekend. The pair also got a minor boost from a weaker reading on the US Empire State manufacturing index for May, released during NA session on Monday.

From technical perspective, rebound from 200-day SMA might have been led by short-covering and from near-term oversold conditions. Moreover, the pair is currently hovering around 100-day SMA and hence, a follow through buying interest would be required to negate the possibilities that …read more

Source:: FX Street