Aussie seems to pick up bid after the RBA interest rate decision and enjoying its bullish moment. Australia’s cash rate has been left on hold at the record low level of 0.10 per cent. The Reserve Bank of Australia met on Tuesday and decided to suspend official interest rates for eight consecutive months. The central bank cut the monetary rate to 0.10 percent in November in a bid to support the Australian economy’s recovery from the epidemic. RBA Governor Philip Lowe said on Tuesday that Australia’s economic recovery was stronger than expected and that growth was forecast to continue.

However, despite the strong recovery in the employment market, inflation and wage results are also included. “While inflation and wage growth are expected to increase, it will only be gradual and moderate,” Mr Lowe said. “The Board is committed to maintaining high supportive monetary conditions to support full employment and inflation targets in Australia,” Mr Lowe said. He also said the bank would continue to monitor the continued strength of the home market as prices rise in all major markets.  “Housing loan growth has increased and there is strong demand from homeowners-occupiers, including first-time home buyers,” he said.

“The board remains committed to maintaining highly supportive monetary conditions to support a return to full employment in Australia and inflation consistent with the target,” Mr Lowe said. “It will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. “To meet that, the labor market must be sufficient to generate materially higher wage growth than it currently has. Therefore, it is not possible to hike rates until at least 2024.

AUD/USD 4 Hour Chart:

Support: 0.7509 (S1), 0.7595 (S2), 0.7481 (S3).

Resistance: 0.7538 (R1), 0.7551 (R2), 0.7566 (R3).

Amidst this the RBA interest rate decision is playing a major role in Aussie dollar upward moment. We expect bullish trend for AUD/USD.