- AUD / USD turned bearish after the RBA meeting.
- The dollar firm against the G10 currencies.
The AUD / USD rose slightly during the first hours of Asian trading, but changed its direction on the European ones and is trading below 0.7600. The price fell to 0.7587, the lowest intraday level since late December.
Moderate RBA change weighs on AUD
Tuesday, the Reserve Bank of Australia (RBA) announced that it left its monetary policy rate unchanged at 0.1% as expected. The central bank announced that it will increase the purchase program by AUD 100 billion. The central bank’s dovish tone put pressure on the Aussie, which is among the worst performing currencies on Tuesday.
On the other hand, the dollar remains strong on almost all fronts. The US Dollar Index (DXY) is at a two-month high near 91.00. The advance of the dollar is mainly against the G10 currencies, since it falls against the emerging ones before an advance in the stock markets.
With no economic impact data ahead in the US, the focus is on the stimulus negotiations. China’s service sector activity data for January will be released in the Asian session on Wednesday. In addition, the governor of Australia’s central bank Lowe will speak.
Technical levels
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