The AUD/US pair rose to 0.7600 early in the global day, boosted by the Reserve bank of Australia. However, the aussie closed south of 0.7500 for a 1.5% swing, underlying the view of economists at OCBC Bank that the RBA shift is not likely to impart sustained AUD directionality.
“The RBA delivered as expected, but note that they retain the most dovish forward guidance among the major central banks, with hikes only expected in 2024. Reiterate that this is unlikely to lead to AUD outperformance – stay negative on the AUD against the USD and its cyclical counterparts, NZD and CAD.”
“0.7600 now forms a double top, with 0.7450 the immediate target on the downside.”
