Corrects high to 14 months in first para

AUD/USD hit a 14-month high Tuesday even after the RBA failed to deliver the hawkish hold investors expected, as the large PBoC stimulus plan helped bulls keep the initiative.

The PBoC's stimulus includes a slew of interest rate cuts and funding plans designed to put the economy on track to meet growth targets and eliminate deflation.

China's yuan, a proxy for the Australian dollar, struck a 16-month high versus the U.S. dollar while iron-ore DCIOc2 and copper HGv1 rallied sharply on the prospects of better growth.

Australia's economy could benefit significantly should the PBoC's stimulus be effective.
Iron-ore and copper exports from Australia to the world's second largest economy could be a boon and help underpin the Australian dollar.

AUD/USD's bullish reaction helped to reinforce already bullish technical signals.

The pair's overnight dip was bought aggressively, which led to a large daily bull hammer forming.

The daily hammer adds to bull signals from rising RSIs, which are not overbought, and September's bull hammer candle.

The 0.6870/0.6900 zone is resistance.
June, July and December 2023 monthly highs sit in that zone.
A break above that resistance could trigger stops, which might intensify the rally.

AUD/USD bulls could then target the 0.7155/75 and 0.7280/0.7300 zones.

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