Australian Dollar Trading Higher After RBA Left Rates Unchanged

The reserve bank of Australia (RBA) decided to leave the overnight rate target at 3% earlier this morning, although this was expected by market participants, it resulted with accelerated buying momentum supporting the Australian dollar especially against the currently weak dollar.

AUDUSD: is trading this morning around 0.7400 – a 7 month high which was last traded on October 2008,  the pair broke to new highs after clearly breeching the daily resistance level around 0.7325 this week.
At this point, it is hard to say where the AUDUSD is  possibly going to encounter further resistance, The only imaginable level right now would be .0.78 as a suitable target in a few weeks time.

The overwhelming uptrend action we are witnessing the last few weeks can only lead us to conclude that there are more and more optimistic investors out there who are ready to jump into positions and take risks, this is certainly not walking hand in had with some of the predictions we herd earlier this year, claiming the world is facing the Great Depression II.

Z.Georgi

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