The Australian dollar held ground above 76 US cents on Tuesday after comments from the central bank chief affirmed expectations domestic interest rates will be held steady for some time yet. Reserve Bank of Australia (RBA) Governor Glenn Stevens said on Tuesday Australian rates were "pretty low", adding to speculation the bank would opt to hold rates at a record low of 3 percent for now.
That helped the Aussie to stay firm at $0.7664, after having jumped over 1.5 cents offshore. It had traded at $0.7503 late here Monday. A resistance level has formed at $0.7714, a seven-month high hit on May 11. The next key level thereafter is seen around $0.7929, a 50 percent retracement from its July-October plunge. "The RBA has left the door open for further monetary policy easing. We do not expect them, however, to step through that door," said David Yen, an analyst at Societe Generale.
Comments
Comments are closed.