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AUD/USD Forecast: Holding On To Daily Gains Could Continue Rallying Once Beyond 0.6215

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AUD/USD Forecast: Holding On To Daily Gains Could Continue Rallying Once Beyond 0.6215

AUD/USD Current Price: 0.6192

  • The RBA maintained the cash rate at a record low of 0.25%, surprise with an optimistic stance.
  • Global equities rallied, although Wall Street trimmed most gains ahead of the close.
  • AUD/USD holding on to daily gains could continue rallying once beyond 0.6215.

The AUD/USD pair surged to 0.6207, its highest in a week, underpinned by a surprisingly optimistic RBA and persistent strength in global equities. The Reserve Bank of Australia left the official cash rate on hold at 0.25% as expected. Policymakers were comfortable with the current easing measures, considered effective. Even further, Governor Lowe & Co. said that improvement in market functioning is evident globally and in Australia, adding that if this continues, the central bank expects to scale down financial support.

Also, the country released its February Trade Balance, which posted a surplus of 4361M. This Wednesday, Australia will publish February Home Loans and Investment Lending for Homes. Meanwhile, global indexes advanced, providing additional support to the Aussie, although Wall Street trimming most of its intraday gains ahead of the close should be a warning for Aussie bulls.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair holds on to gains, trading near the mentioned daily high ahead of the Asian opening. The pair is mildly bullish in the short-term, as, in the 4-hour chart, it has managed to advance above its 20 and 100 SMA, although it remains below a bearish 200 SMA. Technical indicators remain near their daily highs within positive levels, although losing their bullish strength. The rally may continue if the pair extends its advance beyond 0.6215, the immediate resistance.

Support levels: 0.6165 0.6120 0.6080

Resistance levels: 0.6215 0.6150 0.6190

 

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