FXstreet.com (Jakarta) - The AUD/USD fell for a third day despite reports showing Australian home-loan approvals rose for a fifth month and consumer confidence rose over 8% increasing the probability that the Reserve Bank of Australia's rate-cut cycle is ending.
Yesterday the RBA cut the cash rate to 3.00% and said the scope for further cuts is limited. Australia's yield advantage is likely to support the AUD/USD as the global economy recovers. The pair, having established a bottom, is in an upward sloping trading channel. There is support from the short-term uptrend in the 0.70 area.
This is unlikely to be broken unless global equity markets have a significant correction. Resistance exists in the 0.73 area. We believe this resistance will be broken; thus, expecting a test of the resistance from the upper trading band in the 0.75 area, said Hans Nilsson, analyst at CMS Forex.