Technical Bias: Slightly Bullish
- AUDUSD rises 0.3 percent to 0.7747 in New York session.
- RBA considering interest rate cut, but will wait on economic data.
- RBA to slash interest rates again in May: Westpac
The AUDUSD continued to climb in Tuesday’s New York session, as the Reserve Bank of Australia looks to economic data to determine whether another rate cut is warranted.
The AUDUSD was trading at session highs in New York, climbing 0.3 percent to 0.7744. The pair is trading slightly above the 100-day simple moving average (0.7740), where the bias is neutral. Initial resistance will likely be found at 0.7802. On the downside, the AUDUSD is supported at 0.7679.
The Reserve Bank of Australia will take its time in considering whether to lower interest rates again, the minutes of the April 7 policy meetings revealed on Tuesday.
In considering whether to reduce interest rates further, policymakers saw “advantages in receiving more data, including on inflation, to assess whether or not the economy was on the previously forecast path and allowing more time for the economy to respond to the reduction in the cash rate earlier this year,” the official records showed.
The Reserve Bank Board also accepted that “further easing of policy may be appropriate over the period ahead to foster sustainable growth in demand and inflation consistent with the target.”
Australian bank Westpac expects the RBA to cut interest rates to a new record low of 2 percent in May.