AUD/USD keeps gains after China stimulus talk and PBOC rate cut
- China finance ministry is out on the wires stating that it would boost fiscal expenditure in 2019.
- The PBOC cut the reserve requirement ratio as announced on Jan. 4.
- AUD/USD has barely moved in response to China stimulus talk, but continues to report gains amid risk-on action in the equities.
The Aussie dollar has barely moved in response to China stimulus talk.
The nation's finance ministry said a few minutes ago that it is planning to boost fiscal expenditure in 2019 to counter the rising risk of a deeper economic slowdown.
Further, the People's Bank of China (PBOC) slashed rates by 0.5 percentage points as announced on Jan. 4. Moreover, the rates are set to drop by another 0.5 percentage points on Jan. 25.
The Aussie dollar (a proxy for China), however, is struggling to extend gains seen in early Asai, which indicates that the rate cut was already priced-in.
That said, the path of least resistance is to the higher side, as the equity markets are trading in green. As of writing, names like Nikkei, Kospi, and Hang Seng are up 0.8 percent to 1.4 percent. Meanwhile, the AUD/USD is trading above 0.7212, having picked up a bid at 0.7191 in early Asia.
AUD/USD Technical Levels
Today Last Price: 0.7216
Today Daily change: 18 pips
Today Daily change %: 0.250%
Today Daily Open: 0.7198
Previous Daily SMA20: 0.7097
Previous Daily SMA50: 0.7188
Previous Daily SMA100: 0.7176
Previous Daily SMA200: 0.7328
Previous Daily High: 0.7218
Previous Daily Low: 0.7175
Previous Weekly High: 0.7236
Previous Weekly Low: 0.7089
Previous Monthly High: 0.7394
Previous Monthly Low: 0.7014
Previous Daily Fibonacci 38.2%: 0.7191
Previous Daily Fibonacci 61.8%: 0.7202
Previous Daily Pivot Point S1: 0.7176
Previous Daily Pivot Point S2: 0.7154
Previous Daily Pivot Point S3: 0.7133
Previous Daily Pivot Point R1: 0.7219
Previous Daily Pivot Point R2: 0.724
Previous Daily Pivot Point R3: 0.7262