Established in 1974
185,800 clients worldwide
Over 15,000 markets

AUD/USD breaks 200-DMA

The Australian dollar has advanced against the US dollar, after Glenn Stevens of the Reserve Bank of Australia predicted a strong Australian property market.

The Australian dollar is trading at $0.9231, up 0.78%, after an upbeat outlook from the Governor of the RBA. Mr Stevens is trying to refocus the Australian economy away from mining, as it is heavily reliant on Chinese growth, and is trying to encourage domestic business. In his statement, Governor Stevens stated a strong domestic economy and relatively low interest rate could lead to growth in the construction sector.

As Chris Weston stated, the AUD/USD was eyeing up the 200-day moving average ($0.9129) earlier today and has now broken through it. The Australian dollar is now at a four-month high versus the US dollar.

The update from the RBA wasn’t all positive, as Mr Stevens warned that the Aussie was still too high which could lead to interest rate cuts in the second half of the year. The 50-week moving average of $0.9263 is acting as resistance; if we fail to break that level we could drift lower because of profit-taking. 

Spot FX AUD/USD chart

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.

Find articles by analysts