Traders are citing the Australian government’s well timed economic stimulus as one of the main reasons why the AUD USD is in the midst of a major rally.
The Reserve Bank of Australia left its benchmark interest rate unchanged on Tuesday.
This is a clear sign that the interest rate cutting cycle may be ending. The trend is now up on the weekly chart and is likely to continue until it reaches the first upside objective of .7982.
Traders cite government stimulus, lower interest rates and news that China’s economy is recovering as the main reasons to support the developing strong rally.