Reserve Bank of Australia kept rates at 1.50 percent

The Australian dollar rose against other major currencies after the Reserve Bank of Australia kept interest rates at a record low of 1.50 percent. AUD / USD recorded a peak at 0.7653, and subsequently consolidated at 0.7637. The Australian dollar rose against the US dollar after the Reserve Bank of Australia last night decided that for now does not change interest rates. This decision RBA has strengthened the national currency. On the other hand, the US dollar from Friday under negative pressure after disappointing results were published the American labor market. Official data showed that the Reserve Bank of Australia kept interest rates at a record low of 1.50 percent, which was in line with expectations. A separate report showed that the current account balance in Australia fell in the second quarter to minus 15.5 billion to minus 20.8 billion in the previous quarter. Economists had predicted a fall to minus 19.8 billion US dollars. In against the euro, the Australian dollar rose. EUR / AUD dropped to 1.4610. German industrial orders rose in August by 0.2 percent after falling 0.3 percent in the previous month and expected to grow by 0.5 percent. The index of activity in the euro zone retail sales rose in September to 51.0 points from 48.9 in the previous month. The Australian dollar jumped against the Swiss franc. AUD / CHF rose to 0.7482. Data in Switzerland showed that consumer price inflation fell in August by 0.1 percent after falling 0.4 percent in the previous month, which was in line with forecasts of economists.

Australian Construction index recorded decline of 5 index points. It has fallen to 46,6 points in August from 51.6 points in July. Australian GDP rose 0.5% in the second quarter after rising 1% in the previous quarter. Analysts had predicted growth of 0.6%. After this data, Australian dollar dropped to 0.7650 level against the US dollar.

Share prices on Wall Street rose as investors focused on the meeting of the Reserve Bank of Australia. At the start of trading in New York, futures on US benchmark stock index has increased 0.08% (at the level of 2179.75 points) .Dow Jones jumped 0.15 percent, the S & P 500 climbed by 0.42 percent, while the Nasdaq was higher by 0.31 percent. Stock prices on Asian stock markets were mixed. With sporadic trading, futures on the Japanese stock index has increased 0.26%. Japanese index on Tuesday ended a growth of 0.26% achieving a new three-month maximum. The food and processing industry, and transport equipment, mainly influenced the growth. Volatility index decreased by 0.52% and is on 22.77. Japanese Nikkei 225 index jumped 0.20 percent, Hang Seng index in Hong Kong finished up 0.29 percent, while Australia’s S & P / ASX 200 was lower by 0.23 percent. European  stocks increased. All European indices recorded a jump and leads the Dax. The increase is 0.23%, and the action of the highest growth company shares and Fresenius ProSiebenSat. 1 Media. In the part of the losers, there are Deutsche Stock Exchange and Deutsche bank. Euro Stoxx 50 jumped 0.17 percent, France’s CAC 40 climbed 0.21 percent, Germany’s DAX 30 was higher by 0.28 percent, while the London FTSE 100 rose 0.06 percent.

The euro rose against other major currencies after data released showed that GDP in the euro zone rose in the second quarter, in line with our expectations. Forex pair EUR / USD rose to 1.1168. Official data showed that Gross domestic product in the euro zone rose in the second quarter by 0.3 percent after rising 0.3 percent in the previous quarter, which was in line with our expectations of economists. A separate report showed that the index of retail activity in the euro zone rose in September to 51.0 points from 48.9 in the previous month. Against the pound, the yen, and the franc, the euro jumped. EUR / GBP climbed to 0.8378, EUR / JPY rose to 115.36, and the EUR / CHF rose to 1.0929. Consumption in the UK fell in August by 0.3 percent, after a jump of 1.9 percent in July. Swiss gross domestic product grew in the second quarter to 0.6 percent from 0.3 percent in the previous quarter. Analysts had predicted growth of 0.4 percent. The single currency rose against the Canadian, Australian and New Zealand dollars. EUR / CAD rose to 1.4396, EUR / AUD rose to 1.4622 and EUR / NZD climbed to 1.5201. Euro Index rose 0.08 percent to 88.79.

The dollar fell against other major currencies during quiet trading due to uncertainty about the Fed’s interest rate hikes. The index of economic optimism in the US fell in September to 46.7 points from 48.4 in the previous month, while the expected growth to 48.6 points. The index of US service sector activity fell in August to 51.4 points from 55.5 in July. Analysts had predicted a decline to 55.0 points. Forex pair EUR / USD has risen to 11230. The US currency fell against the yen, pound and Swiss franc. USD / JPY dropped to 102. The GBP / USD rose to .3440, while USD / CHF fell to 0.9789. USD / CAD dropped to 1.2912, while the NZD / USD climbed to 0.7341. GDT price index rose 7.7% after rising 12.7% in the previous month. The dollar index fell 0.16 percent to 95.59.

 100-pips

Rising trend line with targets  0.7690 and  0.7720 in extension.

Supports and resistances levels
0.77400 resistance
0.77200 resistance
0.76900 resistance
0.7679 Last
0.75900 support
0.75700 support
0.75350 support

Summary

We can see that one of the strongest economic news pushed higher AUD/USD almost 100 pips. The RBA didn’t change monetary policy. It was supported by the Australian dollar. Level 0.77 can be recorded very soon. It can depend on also from the Fed monetary policy.