The Australian dollar rose notably on Tuesday and was 0.70% stronger during the London session, hovering just below the 0.74 handle.
The Reserve Bank of Australia left monetary policy unchanged today and the main rate remained at 1.50%. The following statement was rather neutral. However, it appears the RBA is happy with the recent drop of the Australian dollar, therefore it wont be in a hurry to raise rates. Most of economists expect the RBA to raise rates in later 2019.
Later in the day, US factory orders are due along with total vehicle sales. These numbers rarely cause any volatility.
Monday was a good day for US data as the manufacturing PMI index rose from 54.6 to 55.4, while the manufacturing ISM survey also improved to 60.2 from 58.7, while analysts had expected only 58.4.
The AUDUSD pair is now rising toward the short-term bearish trend line, which is around the 0.74 level, where previous highs are also seen. Should the pair jump beyond, the immediate bearish trend would be cancelled and the Aussie could rise to 0.7440 in the initial reaction.
On the downside, the support is at 0.7370 and if not held, further decline back to 0.7340 might occur.
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