Australian dollar broke through the range between 0.9870 and 1.0076 in which it was trapped versus the greenback since the beginning of the year. Aussie was helped by the revival of the global risk appetite and encouraging Asia PMI data.

However, analysts at RBS claim that the pair AUD/USD won’t be able to climb much further. The specialists expect Australian currency to struggle above 1.0000 as there are some signs of rebound in the major economies while Australia's yield advantage has diminished somewhat. In addition, as Australian inflation remains subdued enough and January flooding created uncertainty at the domestic market, the Reserve Bank of Australia won’t hurry to raise interest rates.

The bank underlines that although it sees factors that’ll prevent Aussie from gaining, its rate won’t reverse. Immediate support for AUD/USD is found at 1.0000.



Chart. H1 AUD/USD

More info about FBS