The AUD/USD inched closer to 0.7850 levels after the People’s Bank of China (Pboc) cut reserve requirement ratio to 19.5% from 20.0%.
Gains capped by weakness in commodities
The pair currently trades at 0.7807levels after having hit a high of 0.7847 as weak commodity prices, along with surprise interest rate cut by the Reserve Bank of Australia continues to weigh over the Aussie. The Pboc said the cut in the reserve requirement ratio is to keep the economy stable.
Moreover, the commodity prices have not reacted significantly to the rate cut news. WTI crude trades is now down 3.53%, while Comex Copper is up marginally by 0.20%. Thus, the AUD/USD pair may not be able to sustain gains.
AUD/USD Technial Levels
The immediate resistance is seen at 0.7847, above which gains could be extended to 0.7973 levels. Meanwhile, support is seen at 0.7785 (5-DMA) and 0.7718 levels.
Gains capped by weakness in commodities
The pair currently trades at 0.7807levels after having hit a high of 0.7847 as weak commodity prices, along with surprise interest rate cut by the Reserve Bank of Australia continues to weigh over the Aussie. The Pboc said the cut in the reserve requirement ratio is to keep the economy stable.
Moreover, the commodity prices have not reacted significantly to the rate cut news. WTI crude trades is now down 3.53%, while Comex Copper is up marginally by 0.20%. Thus, the AUD/USD pair may not be able to sustain gains.
AUD/USD Technial Levels
The immediate resistance is seen at 0.7847, above which gains could be extended to 0.7973 levels. Meanwhile, support is seen at 0.7785 (5-DMA) and 0.7718 levels.
