Forex: AUD/USD settles near daily highs

FXstreet.com (Córdoba) - The Australian dollar rallied on Tuesday and hit a 1-week high against the greenback, as despite the RBA cut the main interest rate to a decade low, it hinted an end to the current easing cycle, boosting the currency.

However, AUDUSD reached a high of 1.0483 but lost momentum ahead of the 1.0500 figure and pulled back slightly. The pair has spent the last hours consolidating inside a tight range below recent highs, and currently trades around 1.0470, 0.5% above its opening price.

"With any further easing decision likely on hiatus for the next three months, Australian dollar bulls are being bolstered off of support of 1.0400", says Richard Lee, analyst at FXstreet.com. "However, the bullish momentum is in jeopardy ahead of major resistance at 1.0500-1.0525. Descending trendline at 1.0855-1.0624 is helping to reinforce the barrier prompting a likely decline to initial support at the 1.0306 November 15th session low".