5 Aug 2015
AUD/USD: consolidating the upside before more key events
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7375 with a high of 0.7383 and a low of 0.7373.
AUD/USD has moved into a phase of consolidation ahead of tomorrow's jobs data from Australia.
Yesterday the RBA gave the currency a boost when they changed the wording around the price of the currency, going from saying the further declines in the price are necessary to explaining the price is adjusting to the significant declines in key commodity prices. That was enough for markets to get behind the currency while the RBA left policy on hold as expected. Analysts at Westpac Banking Corporation explained the "RBA has helped AUD/USD solidify its position in a rough 0.7250-0.7450 range, but probably no more than that."
The price action was likely exacerbated with the market being very short and the squeeze on 0.74 was met with supply eventually in the NY session on Fed's Lockhart getting behind a rate hike in September for the US. This has taken the pair down to current levels while we await Chinese Caixin services PMI (Jul).
We have the Nonfarm Payrolls at the end of the week that will be the final key data event for the week.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
AUD/USD recovery could reach the 55 DMA
Despite the minor recoveries of late, AUD/USD remains directly offered below the downtrend at 0.7438 and rallies will find initial resistance. Above 0.7454 may trigger a further recovery to the 0.7584 55 day ma.
AUD/USD has moved into a phase of consolidation ahead of tomorrow's jobs data from Australia.
Yesterday the RBA gave the currency a boost when they changed the wording around the price of the currency, going from saying the further declines in the price are necessary to explaining the price is adjusting to the significant declines in key commodity prices. That was enough for markets to get behind the currency while the RBA left policy on hold as expected. Analysts at Westpac Banking Corporation explained the "RBA has helped AUD/USD solidify its position in a rough 0.7250-0.7450 range, but probably no more than that."
The price action was likely exacerbated with the market being very short and the squeeze on 0.74 was met with supply eventually in the NY session on Fed's Lockhart getting behind a rate hike in September for the US. This has taken the pair down to current levels while we await Chinese Caixin services PMI (Jul).
We have the Nonfarm Payrolls at the end of the week that will be the final key data event for the week.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
AUD/USD recovery could reach the 55 DMA
Despite the minor recoveries of late, AUD/USD remains directly offered below the downtrend at 0.7438 and rallies will find initial resistance. Above 0.7454 may trigger a further recovery to the 0.7584 55 day ma.