7 Jul 2015
AUD/USD hit on all sides, Greece to domestics and commodities
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7438 with a high of 0.7502 and a low of 0.7396.
AUD/USD has been on the offer given the continued bearishness around the commodity sector and the Greek debacle while the RBA left rates and for the most part, their statement also the same.
AUD/USD fundamentals and RBA statement
The RBA held the cash rate at 2% as expected, but excluding an explicit easing bias. analysts at TD Securities explained that the price action into the RBA meeting suggested the market was positioning for a dovish stance, given the sharp falls in the iron ore price, the disappointing retail sales number last week and the pick up in volatility associated with Greece and China. "On those counts today’s statement would have disappointed the doves...Coupled with the fact that China and Greece were mentioned in passing, today’s statement leaves us with the impression that the bar for further rate reductions is very high with the RBA content to remain on hold for quite sometime."
In respect of Greece, the Greek banks remain closed and Merkel says that there is still no underlying platform to commence discussions which leaves a great deal of uncertainty over the outlook for the eurozone and global markets, weighing on the Aussie and the safe-haven's. however, there are some whispers that summit will take place this weekend to approve further financial aid programmes for Greece.
AUD/USD on commodities
AUSD/USD is also suffering on the commodity sector's outlook. Analyst at Brown Brothers Harriman explained that Iron ore prices are back below $50 per metric ton. "The April-June rally proved to be short lived. Recent losses have accelerated due to concerns about slower construction activity in China as well as reports suggesting that Australia and Brazil are set to increase supply. Iron ore futures are down nearly 25% since mid-June, and set to test the April low near $47. Similarly, copper futures are off nearly 20% since May levels. There was a new cycle low in copper today below 240. Charts point to a test of the December 2008 low near 125."
AUD/USD is technically
Karen Jones, chief analyst at Commerzbank explained that AUD/USD has sold off to and is recovering from the bottom of the 2015 channel at 0.7425 although offers a bearish outlook towards the base of the 2 year channel at 0.7193.
AUD/USD has been on the offer given the continued bearishness around the commodity sector and the Greek debacle while the RBA left rates and for the most part, their statement also the same.
AUD/USD fundamentals and RBA statement
The RBA held the cash rate at 2% as expected, but excluding an explicit easing bias. analysts at TD Securities explained that the price action into the RBA meeting suggested the market was positioning for a dovish stance, given the sharp falls in the iron ore price, the disappointing retail sales number last week and the pick up in volatility associated with Greece and China. "On those counts today’s statement would have disappointed the doves...Coupled with the fact that China and Greece were mentioned in passing, today’s statement leaves us with the impression that the bar for further rate reductions is very high with the RBA content to remain on hold for quite sometime."
In respect of Greece, the Greek banks remain closed and Merkel says that there is still no underlying platform to commence discussions which leaves a great deal of uncertainty over the outlook for the eurozone and global markets, weighing on the Aussie and the safe-haven's. however, there are some whispers that summit will take place this weekend to approve further financial aid programmes for Greece.
AUD/USD on commodities
AUSD/USD is also suffering on the commodity sector's outlook. Analyst at Brown Brothers Harriman explained that Iron ore prices are back below $50 per metric ton. "The April-June rally proved to be short lived. Recent losses have accelerated due to concerns about slower construction activity in China as well as reports suggesting that Australia and Brazil are set to increase supply. Iron ore futures are down nearly 25% since mid-June, and set to test the April low near $47. Similarly, copper futures are off nearly 20% since May levels. There was a new cycle low in copper today below 240. Charts point to a test of the December 2008 low near 125."
AUD/USD is technically
Karen Jones, chief analyst at Commerzbank explained that AUD/USD has sold off to and is recovering from the bottom of the 2015 channel at 0.7425 although offers a bearish outlook towards the base of the 2 year channel at 0.7193.