AUD/USD Plunged Amid Dovish RBA

Fundamental Analysis

* RBA Bombshell: The Aussie dollar have plunged against the dollar after the Reserve Bank of Australia (RBA) have delivered a dovish statement in its meeting minutes. The Reserve Bank of Australia (RBA) released the minutes from its March monetary policy meeting, revealing that the board did not entertain the possibility of increasing interest rates. Further insights from the minutes indicate uncertainty regarding potential future adjustments to the cash rate, making it challenging to make definitive decisions. On top of that, the pair is also pressured by a strong greenback supported by recent upbeat U.S data.

Technical Analysis

* Technical Breakout: AUD/USD was traded lower following prior breakout below the support level 0.65100. MACD, which illustrates bearish momentum signal suggests the pair to further extend its losses.

* Resistance and Targets: If the bearish momentum persists, there’s a strong likelihood that the price will fall towards the subsequent level 0.64500. However, the price may also potentially experience a short-term technical correction and rebound back towards the level 0.65100.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Moving forward, investors will eye on upcoming data from Australia that could potentially change the direction of RBA as the meeting minutes stated that it would take “some time” before the board could be confident that the inflation is returning to the target.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on Australia and U.S data, RBA updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.