- AUD/USD up on USD selling in Tokyo.
- RBA Gov Lowe doesn’t see a rate increase any time soon.
AUD/USD is continuing to climb on thin trading volumes, testing into 0.7955 as of writing.
The pair experienced a choppy Thursday following Wednesday’s Greenback plunge as inflation within the US economy begins to heat up, with month-over-month CPI data beating both previous the previous reading and median market forecasts. The Aussie’s growth in recent days, closing higher against the US Dollar in four of the last five consecutive trading days, owes itself largely to the broad-market selling of the USD rather than any internalities from Australia.
The Reserve Bank of Australia’s Governor, Philip Lowe, appeared before parliament’s Standing Committee on Economics where he reiterated the RBA’s holding pattern in the face of sluggish economic growth and mixed data. With inflation struggling to make a decisive appearance, the RBA has no choice but to hold steady on their monetary easing policies, even as major global competitors are racing to begin tightening their belts and raise interest rates.
Boundaries are still holding at yesterday’s high/low of 0.7966 and 0.7892 respectively, while longer-term the pair appears to be returning to a bullish stance, following the decline at the end of December that saw the USD regain much-needed territory after selling off for most of 2017. with last Friday marking the start of the recent turnaround, long-term support is priced in at 0.7760, coinciding with the 200-day SMA currently at the same level.