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AUD/USD Pauses Downtrend To Test Key 0.8000 Level

ByXM Group
AuthorTrading Point
Published 01/28/2015, 03:43 AM
Updated 02/07/2024, 09:30 AM

The strongest currency of the Asian session today was the Australian dollar, which rose past the key psychological 80 cent level against the dollar on news that consumer prices during the fourth quarter were relatively firm. The CPI news made less likely the probability that the Reserve Bank of Australia would cut its benchmark interest rate – currently at 2.50% – an event that some in the market are anticipating when selling the commodity-dependent currency.

AUD/USD has made some recovery from a 6-year low of 0.7857 reached earlier this week and has since bounced to test the key 0.8000 level. This will prove to be an important resistance level. The pair managed to briefly breach this level early today to hit 0.8024.

After the post-Australian CPI surge this morning, the pair has been consolidating and the intra-day bias looks neutral as indicated by the hourly RSI.

However, in the bigger picture, the downtrend remains in tact as the market has been making lower peaks and lower troughs since the high of 0.9400 back in September 2014. The underlying bearish bias is indicated by the market being below the Ichimoku cloud and the tenkan-sen and kijun-sen are falling, while RSI remains in bearish territory below 50.

AUD/USD Daily

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