Forex: AUD/USD testig support around 1.0440
FXstreet.com (Barcelona) – The Aussie Dollar is the laggard in Asian trading, with Australian importers amongst the most notorious sellers according to IFR markets. On the contrary, the Japanese Yen, Kiwi and the US Dollar are topping the climbers, although gains remain modest.
Investors appear skeptical to continue supporting the currency at present highs given growing speculation that the RBA may cut rates by as much as 50 bp in tomorrow’s rate call. Today’s Australia April TD-MI inflation gauge came at +1.9% YoY, reinforcing bold rate cut measures as it it “puts overall Australian inflation below the RBAs target band” Sean Lee from Forexlive comments.
While the AUD/USD has recently been testing the 100-day MA at 1.0442, the important support comes at former resistance around 1.0420 ahead of last Thursday’s high at 1.0400 round number. On the upside, if Friday’s bulls return to the market with the same impetus, watch for round figure 1.0500 as next potential target.