- Clings to key support near 0.7890.
- USD firmer in thin markets.
- RBA talks down AUD strength.
Fresh bids emerged once again near the 0.7890 support area, allowing a tepid bounce in the AUD/USD pair back above the 0.79 handle, as markets assess the minutes of RBA’s January February meeting.
AUD/USD: Focus shifts to Aus construction and wages data
The spot came under fresh selling pressure last hour and fell back below the 0.79 handle, in a delayed reaction to the RBA’s Feb monetary policy meeting minutes, which reiterated that a rising AUD would impede pick-up in economic growth, inflation while adding that Low rates helping reduce unemployment, lift inflation. These RBA headlines suggested that the Australian central bank could very well remain in a wait-and-see mode in the near-term before future rate hikes.
Moreover, a fresh bout of the USD buying across the board, helped by rising Treasury yields, also knocked-off the major in a bid to test the key support. However, the bulls held on to the technical support, now pushing the rates above the 0.7900 levels.
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