The RBA raised its benchmark rate by another 25 basis points today, signaling confidence in the performance of Australia’s economy despite fiscal uncertainties in Europe and liquidity tightening in China. In fact, China just reported a sharp decline in bank lending during the month of February, and it will be interesting to see whether this has an 
impact on Pacific currencies tomorrow as the news sinks in. Australia will keep the news flow going by printing GDP tomorrow morning. Considering the RBA raised rates today and expressed confidence in the economy, a strong showing from GDP wouldn’t be surprising. The Aussie hasn’t enjoyed too much topside momentum from the rate hike, meaning the currency pair could make a sizable move should GDP top estimates. Meanwhile, it seems the Aussie’s .90 level is continuing to play a psychological role. However, the currency pair is currently testing our 1st tier downtrend line, which runs through February highs. Our downtrend lines above are also getting wider, meaning the Aussie has some nice room to the topside should fundamentals and psychological work in the currency’s favor. Investors will also receive key data releases from the UK and U.S. tomorrow and all eyes will be focused on America’s ADP Non-Farm Employment Change figure. Additionally, the BoE and ECB have monetary policy meetings on Thursday, implying that volatility could increases as the trading week progresses.
Technically speaking, the Aussie has multiple uptrend lines serving as technical cushions along with intraday, 3/1, and 2/19 lows. As for the topside, the Aussie has multiple downtrend lines serving as technical barriers along with February highs and the highly psychological .90 level.
Price: .9033
Resistances: .9041, .9057, .9074, .9090, .9103, .9119
Supports: .9025, .9011, .8993, .8981, .8965, .8950
Psychological: .90, February highs and lows
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