Buy on a level breakthrough of 0.7296 with 0.7380 target. Stop loss = 0.7246.
Reason for the trading strategy
Last Friday, the Chinese regulator lowered the key interest rates by 25 bps, and the reserve ratio by 50 bps. At the moment, the key lending rate in China is 4.35% and the deposit rate is 1.5%. Pumping China's banking sector with additional liquidity will have a positive effect on the future growth of the national economy. Chinese authorities expect a 7% GDP growth at year-end 2015. The statistics supports the commodity currencies including the Aussie.