The economy will "bounce back" quickly, with Australians having accumulated 250 billion AUD (183.2 billion USD) in savings during the COVID-19 pandemic, Australia's Treasurer Josh Frydenberg said in a press conference on Wednesday. The RBA minutes repeated the central bank’s well-worn message that economic conditions for a rate hike will not be met before 2024. The minutes also indicated that the RBA is projecting that the economy to show growth in Q4 after what is expected to be a decline in GDP in the third quarter. The minutes were relatively dovish, especially regarding rate the RBA’s rate policy. The Aussie is also benefitting from improved risk sentiment on Tuesday, as the US dollar is broadly lower against Asian currencies, as well as the euro and the British pound. As well, higher coal prices have boosted the Australian dollar. China is looking to coal to alleviate energy shortage which is good news for Australian coal producers.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES : (TECHNICAL)

AUS200 (ASX 200) made a rebound from our major support zone that lyes between 7170 and 7094 price actions, boosted by fundamentals, the Australian Index managed to break above our upper trend line. 61.8% fibo retracement level and the exponential moving average 200 in the daily time frame became another reason to support the hawkish momentum. For further gains, AUS200 (ASX 200) needs to break above the Senkou Span A and B of the ichimoku cloud to rally towards 7630. On the bearish side, AUS200 (ASX 200) would have to perform an impulsive bearish breakout below 61.8 fibo level i.e 7094 in order to open doors for losses towards 50% and 38.2% fibo level at 6928 and 6762.

Aussie Strengthened After Covid-19 Lockdown Ends

Oct 20 2021