Global macro overview for 07/06/2016:
The Reserve Bank of Australia left the interest rate at the level of 1.75% yesterday, just as market participants had expected. The main reason for the RBA's decision was a robust first-quarter report of gross domestic product (GDP) for the January-March period that showed expansion by 3.1% on-year. Moreover, among other factors underlining the case for steady policy are oil prices that moved higher from their recent lows. The crude oil current price is oscillating around $50 per barrel, which is good news for energy exporting countries like Australia. In conclusion, there is no reason for the RBA to justify another urgent rate cut, but if the economic outlook deteriorate, further rate cut would be made to stimulate the economy.Let's now take a look at the AUD/USD technical picture in the daily time frame. Since the recent low at the level of 0.7132 bulls took the control over the market and managed to move the price higher up to the level of 0.7412, just shy of the 200D MA at the level of 0.7480. The bullish rally is fueled by good economic news, but only a sustained breakout above the level of 0.7546 would change the medium-term outlook in their favour.
