The RBA kept rates unchanged:
The Reserve Bank of Australia (RBA) was the latest central bank to announce its policy objective when it left its cash rate unchanged at 4.35% in September 2024, as expected. The central bank noted that current policy remains restrictive and is working as anticipated, but the outlook is still uncertain. Inflation remains above the 2-3% target range, and returning it to target is the RBA’s priority. The bank emphasized that policy will need to stay restrictive until inflation is sustainably moving towards the target. The RBA remains committed to taking necessary actions to control inflation and is keeping options open for future policy moves.
China stimulus is also a contributor to the more bullish bias (as is the dollar selling today on the back of weaker data today).
Technically, the price closed above the 61.8% of the move down from the January 2023 high to the October 2023 low after three days of trading above and below the level but falling off into the close.
The low today was at 0.6814, just 4 pips below that key retracement level before starting the run higher in trading today.
Technically, the price today also moved above the end of December high at 0.6871. That is a key break that if it holds, gives the buyers the green light to move higher.
Having said that, the next upside target comes in above and below the 0.6900 level which was home to swing highs from June and July of last year (see chart below). The “double top” makes that a tough nut to crack.
This article was written by Greg Michalowski at www.forexlive.com.