4 May 2015
AUD/USD gaps down to 0.7830, RBA rate decision eyed
FXStreet (Bali) - AUD/USD opens Asia pressured to the downside, quoting at 0.7830 at the open vs 0.7850 NY close last Friday, with traders awaiting for key risk events ahead, including the RBA monetary policy decision early Tuesday and the Australian jobs report on Thursday.
In-house view: Valeria Bednarik, Chief Analyst at FXStreet
"The Australian dollar fell against the greenback down to 0.7802, before finally finding some short term buying interest. The Aussie will have to face two major local events this week, the RBA economic policy meeting early Tuesday, and the monthly employment report on Thursday."
"As for the first, Governor Glenn Stevens is expected to down-talk the local currency as usual, and there is a limited risk of a surprise rate cut from the current 2.25% benchmark. As for employment data the unemployment rate is expected to rise to 6.2% whilst the economy is expected to add just 4K new jobs compared to previous 37.7K, all of which should weigh on the local currency."
"Technically, the 4 hours chart shows that technical readings are biased strongly lower, with the 20 SMA turning south in the 0.7940 region and the Momentum indicator heading lower well below 100, anticipating additional declines particularly on a break below the 0.7800 figure."
"The 0.7940 has been quite a strong static resistance level, so it will take an advance beyond it to call for an upward continuation, back towards the recent highs in the 0.8100 region."
In-house view: Valeria Bednarik, Chief Analyst at FXStreet
"The Australian dollar fell against the greenback down to 0.7802, before finally finding some short term buying interest. The Aussie will have to face two major local events this week, the RBA economic policy meeting early Tuesday, and the monthly employment report on Thursday."
"As for the first, Governor Glenn Stevens is expected to down-talk the local currency as usual, and there is a limited risk of a surprise rate cut from the current 2.25% benchmark. As for employment data the unemployment rate is expected to rise to 6.2% whilst the economy is expected to add just 4K new jobs compared to previous 37.7K, all of which should weigh on the local currency."
"Technically, the 4 hours chart shows that technical readings are biased strongly lower, with the 20 SMA turning south in the 0.7940 region and the Momentum indicator heading lower well below 100, anticipating additional declines particularly on a break below the 0.7800 figure."
"The 0.7940 has been quite a strong static resistance level, so it will take an advance beyond it to call for an upward continuation, back towards the recent highs in the 0.8100 region."