[FONT="Times New Roman"][SIZE="6"]Technical Analysis for AUD/USD: May 4, 2016
After experiencing its steepest fall this year, the Australian Dollar gained some ground on Wednesday as Fed officials put the greenbacks in a positive light.
The Reserve Bank of Australia (RBA) put the interest rate at 1.75 percent, paring off 25 basis points. Governor Glenn Stevens cited the recent deflation and sluggish global growth as reasons to cut the rate.
One of the central bank’s aim, which is to lower the local currency, materialized upon the announcement. The AUD/USD slid to 73 cents on Tuesday. RBA officials previously said that the AUD has been overvalued since the beginning of the year.
The spot exchange has now returned to 0.75 levels, showing that perhaps one rate cut is not enough to jawbone the AUD. It reached a high of 0.7516 today and is trading within a range of 49 pips.
Fed presidents Dennis Lockheart and John Williams said on Tuesday that a rate hike is visible for the USD, taking it to bullish territory.
The first support is at 0.7366 and 0.7329 subsequently. The first resistance is at 0.7603 and 0.7641 subsequently. The MACD indicator is in negative location. The price is rising.
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