With the RBA's move of 50bps reduction on rates have been seen as a realignment of rates corresponding with the rest of the other majors. Some analysts have attributed it to the aggressive stance taken by the Reserve Bank of Australia from its previous carefully selected outlook of the global economy compared to its own. But this move have taken it straight through the months ahead and would simply monitor how it would directly affect their trade balance sheet with their trading partners at the second quarter of the year.
AUDUSD WEEKLY
On the Technical perspective, this movement have litteraly justified the bearish candle pattern of the Aussie in the weekly formation. From a significant high price at 1.0855 registered on Feb.26 which was the target objective and Price reversal point that led the bearish trend for the Aussie Dollar and currently resting just above its 21week Moving average at 1.0335. However, this has given the Aussie additional leverage in the longer term period both techncially and fundamentally to perpare for some room to continue its bullish formation. The prices are well within a rising trend and channel that would support position traders / investors a considerable leverage to play and average a cross trade between rates of other currency majors.
We are currently looking at a possibility of extension just above the parity level as indicated in the broken trendline support & channel shown on the figure. And please refer to the monthly configuration that the inital bearish ner term trend would be good for short term positions before the next leg higher would be made. Key prices to check would be 1.0190-1.0220 range on the low side of the prices.
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