1 May 2015
AUD/USD bears taking advantage of lofty prices
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7833 with a high of 0.7919 and a low of 0.7803.
AUD/USD bears have had a good run of the downside after taking advantage of levels on the 0.80 handle and lofty prices, while the pair now finds a base, as temporary as it may be, on the 0.78 handle at the figure and aforementioned lows. A shift of themes in the market are supporting the greenback to an extent, with a big fall in gold and the DXY performing well on the bid today, closing the session with gains for the first time after six consecutive pullbacks.
Meanwhile, the Aussie is on the back foot with the prospects of the RBA's action next week. A Bloomberg survey shows 20 or 28 analysts expect a rate cut from the RBA next week. Jane Foley, Senior Currency Strategist at Rabobank explained that while the sell-off in the USD has tipped the scale of favour of further easing, the underlying causes of further monetary accommodation stem from concerns about the weakness of Chinese growth and the slump in iron ore and coal prices. "We expect AUD/USD to head towards 0.74 on a 6 mth view."
Karen Jones, chief analyst at Commerzbank noted the current technicial conditions in the pair and explained that the AUD/USD has reached key resistance, namely the 0.8068 2010 low. "This has provoked initial failure and the market has reacted back to the near term uptrend at 0.7877. Failure here will trigger a slide to the 55-day ma at 0.7752 - and the market will need to close below here to signal the resumption of the down move."
AUD/USD bears have had a good run of the downside after taking advantage of levels on the 0.80 handle and lofty prices, while the pair now finds a base, as temporary as it may be, on the 0.78 handle at the figure and aforementioned lows. A shift of themes in the market are supporting the greenback to an extent, with a big fall in gold and the DXY performing well on the bid today, closing the session with gains for the first time after six consecutive pullbacks.
Meanwhile, the Aussie is on the back foot with the prospects of the RBA's action next week. A Bloomberg survey shows 20 or 28 analysts expect a rate cut from the RBA next week. Jane Foley, Senior Currency Strategist at Rabobank explained that while the sell-off in the USD has tipped the scale of favour of further easing, the underlying causes of further monetary accommodation stem from concerns about the weakness of Chinese growth and the slump in iron ore and coal prices. "We expect AUD/USD to head towards 0.74 on a 6 mth view."
Karen Jones, chief analyst at Commerzbank noted the current technicial conditions in the pair and explained that the AUD/USD has reached key resistance, namely the 0.8068 2010 low. "This has provoked initial failure and the market has reacted back to the near term uptrend at 0.7877. Failure here will trigger a slide to the 55-day ma at 0.7752 - and the market will need to close below here to signal the resumption of the down move."