Aussie rises after unchanged RBA; mixed data
The Australian dollar advances on Tuesday after RBA left interest rates unchanged in expected action, with fresh upside being underpinned by upbeat current account data (Q2 surplus A$5.9B vs A$1.4B f/c and Q1 deficit of A$1.1B) that offset negative result from Australian retail sales (July -0.1% vs 0.2% f/c and 0.4% June).
The pair was initially lower and hit session low in Asia at 0.6687, before accelerating higher that marks another strong downside rejection.
Daily studies are mixed as momentum, stochastic and RSI rise, while MA’s remain in full bearish setup.
Falling 5DMA caps for the fifth straight day (currently 0.6726) and close above is needed to generate initial bullish signal and sideline immediate downside threats.
Stronger bullish signals could be expected on firm break above 10/20DMA’s (0.6744/58 respectively) which would sideline bears and signal further recovery.
Otherwise, upticks are expected to offer better selling opportunities for renewed attack at key supports at 0.6680 zone (7/26 Aug / 02 Sep lows).
Res: 0.6726; 0.6744; 0.6758; 0.6787
Sup: 0.6700; 0.6687; 0.6677; 0.6600