The Australian dollar advanced 1.8% since Asian opening on Tuesday, making the biggest daily advance in the new month and hit new April’s high
Risk sensitive currency was supported by rise in global equities that boosted appetite for riskier assets, with RBA’s decision earlier today to keep interest rates at the record lows, contributing to positive tone.
Rising bullish momentum; north-heading stochastic / RSI on daily chart and formation of 10/20DMA’s bull-cross also support the action, which pressures key barriers at 0.6212/22 (31 Mar correction high / falling 30 DMA) and nearby key Fibo level at 0.6235 (61.8% of 0.6684/0.5509).
Close above these levels is needed to signal continuation of recovery leg from 0.5509 (19 Mar low) which was interrupted by shallow 0.6212/0.5980 correction.
Thick 4-hr cloud (0.6096 / 0.5956) and broken rising 10DMA (0.6085) strongly underpin today’s action.