19 Jun 2015
AUD/USD failing to move past the resistance at 0.7812 – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, shares the outlook and key concerns ahead for the AUD/USD.
Key Quotes
“AUD is weak, underperforming along with EUR as market participants look to a shifting balance of risks stemming from the emergence of turmoil in China’s financial markets. The concerns are weighing on the RBA outlook and adding to dovish expectations with OIS now pricing in a 56% chance of a rate cut over the next 12 months (the pricing had been as low as 30% on June 11).”
“AUD momentum signals are conflicted, the RSI having broken back below 50. AUD has failed to make meaningful gains above resistance at both the 50 (0.7812) and 100 day MA’s (0.7777). Looking to support at 0.7650 and resistance at 0.7850.”
Key Quotes
“AUD is weak, underperforming along with EUR as market participants look to a shifting balance of risks stemming from the emergence of turmoil in China’s financial markets. The concerns are weighing on the RBA outlook and adding to dovish expectations with OIS now pricing in a 56% chance of a rate cut over the next 12 months (the pricing had been as low as 30% on June 11).”
“AUD momentum signals are conflicted, the RSI having broken back below 50. AUD has failed to make meaningful gains above resistance at both the 50 (0.7812) and 100 day MA’s (0.7777). Looking to support at 0.7650 and resistance at 0.7850.”