Global macro overview for 06/09/2016:
The Reserve Bank of Australia left the cash rate unchanged at 1.5% overnight, just as expected. RBA Governor Glen Stevens said in the statement that global economy grows at a lower than average pace, but China's growth seems to be stabilizing.These were two main reasons why after easing in August the RBA considered steady policy to be consistent with sustainable growth. Moreover, Stevens remarks regarding domestic economy were mostly positive. He said the Australian economy continues to grow, the inflation remains at low levels, employment keeps increasing, and home prices have risen moderately over past year (no real threat of a bubble yet). In conclusion, the statement from Governor Stevens was very neutral, but it was widely expected after the August rate cut.
Let's now take a look at the AUD/USD technical picture on the daily time frame. Bulls managed to bounce the price from 100 DMA, but the rally does not seem to be impressive so far. The technical resistance at the level of 0.7672 is still not violated and the market is back to the range bound horizontal zone.
