8 Dec 2014
AUD/USD trades sub 0.83, Murray report weighs
FXStreet (Bali) - AUD/USD has been pressured sub 0.83 in early Asian interbank trade, following the release of the Murray report in Australia, a negative input for the AUD as market now speculates on the bar being lowered fro the RBA to cut rates.
Valeria Bednarik, Chief Analyst at FXStreet, notes: "The AUD/USD pair trades at its lowest level in over 4 years, weighted not only by greenbacks’ strength but also by increasing market’s belief the Reserve Bank of Australia will cut rates in 2015 amid an economy struggling for traction and tumbling export prices: as an example, the price of iron ore which accounts for 20% of Australia's export income, has fallen nearly 50% since the beginning of the year; gold decline and consolidation near production cost, surely won’t help Australian mining sector."
Technically, Valeria adds: "The 1 hour chart shows price struggling right above the 0.8300 mark, with 20 SMA heading lower well above current level and indicators heading also south near oversold levels. In the 4 hours chart both momentum and RSI extend their bearish momentum despite entering oversold territory, whilst 20 SMA offers dynamic resistance at 0.8380, pre NFP intraday highs.
Valeria Bednarik, Chief Analyst at FXStreet, notes: "The AUD/USD pair trades at its lowest level in over 4 years, weighted not only by greenbacks’ strength but also by increasing market’s belief the Reserve Bank of Australia will cut rates in 2015 amid an economy struggling for traction and tumbling export prices: as an example, the price of iron ore which accounts for 20% of Australia's export income, has fallen nearly 50% since the beginning of the year; gold decline and consolidation near production cost, surely won’t help Australian mining sector."
Technically, Valeria adds: "The 1 hour chart shows price struggling right above the 0.8300 mark, with 20 SMA heading lower well above current level and indicators heading also south near oversold levels. In the 4 hours chart both momentum and RSI extend their bearish momentum despite entering oversold territory, whilst 20 SMA offers dynamic resistance at 0.8380, pre NFP intraday highs.