AUD/USD consolidates supply from highs of 0.7637, bulls targetting 0.7688 fibo

AUD/USD is consolidating the supply from highs of 0.7637 with a strong rally after the initial volatility post the RBA decision and announcements.

The RBA cut rates to 1.5% overnight on the back of limited inflationary pressures and a moderate pace of economic growth. "The banner headlines in Australia recording the fact that rates reached a historic record low don't get the world outside Australia quite so excited: 1.5% seems quite high these days, and there's definitely less agonising about a cut from 1.75 to 1.5% than about how far into negative territory to go, or how and when to increase asset purchases," explained Kit Juckes, economist at Societe Generale. From here, the markets will now continue to try and gauge whether the RBA will act again should the economy continue to only grow at a moderate pace. All eyes are now on the BoE and nonfarm payrolls at the end of the week.

AUD/USD levels

AUD/USD has been better bid ever since its recovery of the the 55 day ma at 0.7424 with bulls eyeing 0.7675 recent high and the 78.6% retracement at 0.7688, as noted by analysts at Commerzbank, "Although we look for these to hold the topside. Intraday the Elliott wave count has turned negative and we will attempt to exit our long positions."