Global macro overview for 05/04/2016:
The Reserve Bank of Australia kept the official cash rate at a record low of 2% for a 10th consecutive meeting yesterday, just in line with the market expectations. RBA Governor Glenn Stevens said low inflation would facilitate another rate cut if that was necessary. This statement might be supported by the recent data, as the consumer inflation in the final quarter increased to 1.7%, the sixth straight quarter that headline inflation was below the RBA's 2-3% target range. In conclusion, if the next March-quarter inflation data ( scheduled for release on April 27) will turn out to be another failure, then chances for a rate-cut in June will be high.
Let's now take a look at the technical picture of the AUD/USD pair in the daily time frame. After making another marginal higher high at the level of 0.7721, the pair has reversed and currently it is trading just above the short-term dashed trend line around the level of 0.7564. Bulls are still in control over this market, but if bears make the price fall out of the rising wedge formation, then the next support will be seen at the level of 0.7411.
