The Australian dollar succumbed after the country’s central bank kept rates steady at its April meeting. The Reserve Bank of Australia held its cash rate at 1.5% over slowing economic growth.
Philip Lowe, governor of the RBA, stated: “The low level of interest rates is continuing to strengthen the Australian economy. Further growth in diminishing unemployment and having inflation return to target is expected, although this progress is likely to be gradual.”
In response, the Australian dollar fell as much as 0.5% to $0.7069 following the decision. There was an excellent double bottom level supporting the AUD/USD pair around $0.7065. That’s where we jumped into the buying trade.
At the moment, AUD/USD is bouncing off above our entry price $0.7065, making a sound bullish move towards our take profit level of $0.7105. Let’s move the stop loss at breakeven points to avoid bearish reversals.
Good luck!
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