AUD doing the RBA’s work – BBH

FXStreet (Guatemala) – Analysts at Brown Brothers Harriman explained that the Reserve Bank of Australia appears to have signalled that it will rely on the currency to provide the stimulus the economy still requires rather than interest rates.

Key Quotes:

“Ironically this has helped support the Australian dollar, which recovered quickly from the China-induced sell-off to new multi-year lows near $0.7200. “

“Indeed, the recovery was so quick the technical indicators such as the RSI could not even register it, leaving a bullish divergence. “

“The upper end of the range is seen near $0.7450 and then $0.7500. This should be sufficient to cap it. “

Analysts at Brown Brothers Harriman explained that the Reserve Bank of Australia appears to have signalled that it will rely on the currency to provide the stimulus the economy still requires rather than interest rates.

(Market News Provided by FXstreet)