ANALYSIS
NQ100 Finds Support from PPIApr 14
Pressure on AUDUSD May Increase in Medium Term
The Reserve Bank of Australia (RBA), last week, increased the policy rate by 25 basis points to 2.85%, the highest level since 2013, giving some support to the parity. However, although the evaluation that the US Federal Reserve (FED) could raise interest rates softer with the unemployment rate rising to 3.7% in the USA, lowered the dollar, FED Chairman Jerome Powell's emphasis on the need for a restrictive monetary policy stance, probably for a while longer, seems to indicate that the parity will remain under pressure in the medium term. As a matter of fact, in the technical study, it is seen that the AUDUSD parity defends the downward trend. From this point of view, a permanent decrease of the parity below 0.6245 level in downward movements may pave the way for a regression to the psychological 0.6000 support. 0.6695 and 0.6950 resistances will be followed in possible upward attempts.
