AUD/USD near-term bias more neutral as election result give buyers some confidence
AUD/USD sits in between both key hourly moving averages currently
The aussie opened with a gap higher today as the election result was more friendly with the incumbent government surprisingly winning out what appears to be a majority to stay in office. That is easing some political risk fears in the currency as the government looks set to follow through with their fiscal stimulus (tax cuts) to help boost the economy.
AUD/USD touched a high of 0.6938 on the move higher in the early morning before retracing back under the 100-hour MA (red line) to a low of 0.6890 but has now climbed back above the key near-term level to trade around 0.6920.
As such, the near-term bias remains more neutral now as price hovers in between both key hourly moving averages. The 200-hour MA (blue line) is seen @ 0.6949.
So, what's next for the aussie?
The election result is no doubt a short-term relief for the currency and it should be enough to prevent a significant fall at the start of the week - barring any massive collapse in risk sentiment that is.
But all eyes will be on tomorrow instead. First up, we'll have the RBA meeting minutes due before getting to the more anticipated speech by RBA governor Philip Lowe. The latter is the spot to watch because if the RBA is going to announce a rate cut on 4 June, Lowe's speech tomorrow will be the perfect platform to communicate that bias.
That will be the key risk event for the aussie in the coming sessions. Otherwise, pay attention to the near-term levels above with near-term support seen around 0.6914 and light offers between 0.6890-00 currently.
Meanwhile, topside resistance is seen around 0.6937 and then the 200-hour MA @ 0.6949.