Aussie Jumps as RBA Chief Says Currency Not Overvalued

On an Intraday 30-minute Chart, AUD/USD is rebounding from a low of 0.6805...


Reserve Bank of Australia Governor Philip Lowe stated in a conference: "I think it is likely that we are going to see interest rates at their current level for years."

Regarding the Australian dollar, Lowe said: "I would like a lower currency at some point (...) but at the moment, I think it is really hard to argue the Australian dollar is overvalued."

He cited relatively better health and economic outcomes from the coronavirus impact, and strong commodity prices.

Meanwhile, investors are concerned about a second-wave of the coronavirus pandemic. In Victoria, Australia's second-most populous state, another 19 cases were confirmed Sunday, taking the number of new cases in the state to 160 over the past week. Authorities have extended a state of emergency by four weeks to July 20

On an Intraday 30-minute Chart, AUD/USD is rebounding from a low of 0.6810.

Source: GAIN Capital, TradingView

It is currently striking against the Upper Bollinger Band calling for acceleration to the upside.

And strong upward momentum is evidenced by the relative strength index, which is well directed above 50.

Riding on a continued rebound, the pair is expected to encounter Upside Resistance at 0.6875 and 0.6910 (around the high of last Friday).

Alternatively, a return to the Key Support at 0.6810 would open a path toward 0.6775 on the downside.

More from AUD

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.