Chart of the day - AUDUSD (1.3.2021)
Australian dollar is one of the best performing major currencies today amid an increase in risk appetite.
AUD is gaining in spite of RBA interventions, who acted to push back yields. Australian central bank doubled purchases of long-term bonds today and has managed to halt the increase in Australian yields. RBA will announce its next monetary policy decision tomorrow at 3:30 am GMT. Rates will likely be left unchanged but attention will be on QE decision, especially size of long-term bond purchases.
AUDUSD dropped below the lower limit of the Overbalance structure last week but found support at the upward trendline. The pair is climbing today and tries to break above the major resistance zone at 0.7750, where the 23.6% retracement and 50-session moving average are located. Failure to break above this hurdle could see the pair pullback towards the support zone at 38.2% retracement in the 0.7600 area.