The Australian Dollar remains to a bid tone, as the broad-based weak US dollar displayed a heavy tumble on Monday, back towards levels recorded in early March.
Meanwhile, today’s dovish Reserve Bank of Australia (RBA) minutes and The People’s Bank of China’s (PBOC) inaction failed to have any impact on the AUD/USD pair.
As per the latest minutes, the RBA board members remain committed to doing what they reasonably can do to support the Australian economy while citing the need for “highly supportive” monetary conditions.
The Reserve Bank of Australia (RBA) left rates at a record low 0.10% at its April 6 meeting while reiterating its commitment to keep policy accommodative for as long as is necessary to pull down unemployment and push inflation higher.
The minutes showed the RBA would maintain this supportive policy stance until actual inflation is sustainably within its 2-3% target range, a goal it does not expect to meet before 2024.
Due to the break of the resistance at US$0.7770-80, it now opens a potential short squeeze to US$0.7860-75.
The support is located at $US0.7745 which is breached could question the upside call.