4 May 2015
AUD/USD bears taking charge ahead of RBA meeting
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7815 with a high of 0.7846 and a low of 0.7801.
AUD/USD is dropping on the back of yet further lacklustre economic events from Australis largest trading partner, China. Today, Chinese HSBC Manufacturing PMI (Apr) arrived at 48.9 vs 49.2 last and remains below the 50 mark.
The Aussie is testing towards the psychological 0.78 mark and trades well below 0.8000 where bulls had been enjoying space there recently until the less committed bulls dropped away on fears that the RBA have warned that the price is too high. We have the meeting coming up from the Central Bank tomorrow and analysts are on the fence as to whether there will be a cut of 25bp's or not.
"Given current market sentiment back towards higher bond yields, it seems an inopportune moment for the RBA to be proactive. However, if they want to shift AUD lower, now is a great time," explained analysts at Rabobank.
Technically, AUD/USD has been failing on the upside and is set toward the 55 day ma at 0.7752 if the bulls give out at the psychological 0.78 handle this week. A close below this could signal that the uptrend is done for now and we are looking at the RBA's preferred levels down towards this years lows in the 0.7520's again.
AUD/USD is dropping on the back of yet further lacklustre economic events from Australis largest trading partner, China. Today, Chinese HSBC Manufacturing PMI (Apr) arrived at 48.9 vs 49.2 last and remains below the 50 mark.
The Aussie is testing towards the psychological 0.78 mark and trades well below 0.8000 where bulls had been enjoying space there recently until the less committed bulls dropped away on fears that the RBA have warned that the price is too high. We have the meeting coming up from the Central Bank tomorrow and analysts are on the fence as to whether there will be a cut of 25bp's or not.
"Given current market sentiment back towards higher bond yields, it seems an inopportune moment for the RBA to be proactive. However, if they want to shift AUD lower, now is a great time," explained analysts at Rabobank.
Technically, AUD/USD has been failing on the upside and is set toward the 55 day ma at 0.7752 if the bulls give out at the psychological 0.78 handle this week. A close below this could signal that the uptrend is done for now and we are looking at the RBA's preferred levels down towards this years lows in the 0.7520's again.