- The Aussie dollar slowly and steadily grinded higher against the US dollar, and looks poised for the next move.
- There is a major contracting triangle pattern formed on the 4-hours chart of AUD/USD, which could provide us the next break.
- This week in a crucial decision, the Reserve Bank of Australia reduced the interest rates from 1.75% to 1.50%.
RBA Rate Cut and Statement
Earlier this week, there was a major event in Australia, as the RBA Interest Rate Decision was announced by the Reserve Bank of Australia. The market was waiting for a rate cut this time, and the central bank did not disappoint. They reduced the interest rates from 1.75% tom 1.50%.
The RBA statement pointed out that the “global economy is continuing to grow, at a lower than average pace. Several advanced economies have recorded improved conditions over the past year, but conditions have become more difficult for a number of emerging market economies”.
Today, the RBA Monetary Policy Statement was released by the Reserve bank of Australia. There are a few things to note. The most important one the reason for the rate cut, which is the developments in the housing market.
The Aussie dollar moved down after the release, but soon managed to recover the ground and remained in an uptrend.
AUD/USD Pair Analysis
The AUD/USD pair climbed higher recently against the US Dollar despite all odds and the rate cut. There is a crucial contracting triangle pattern formed on the 4-hours chart of AUD/USD, which may act as a catalyst for the next move.
If we can notice from the chart, then the pair is heading towards a major break. The triangle is about to break, and the pair is testing a monster resistance area of 0.7675, which also represents the last swing high.
So, if the pair fails to break it, then there would be a possibility of a double top pattern, which may ignite sharp losses in AUD/USD.
Tags: AUD/USD, Aussie dollar, Rate Cut, RBA, US Dollar