4 Aug 2015
AUD/USD: a sell on the rally?
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7414 with a high of 0.7428and a low of 0.7263.
AUD/USD is consolidating the upside on the back of last night's RBA meeting and statement which has allowed for the Aussie to rally on the back of Stevens when he said that the Aussie was adjusting to declines in commodity prices instead of saying that further falls in the Aussie were likely and necessary. With the policy unchanged, for now, the statement said that inflation was consistent with the target and that employment has been somewhat stronger as week.
The Aussie was already better bid on earlier demand in Tokyo wit the release of the Retail sales that came in 0.7% and better than the consensus of 0.4% while the trade balance showed an improvement on consensus, with both imports and exports increasing at 4% and 3% respectively.
Key data events this week
Meanwhile, we await the unemployment data from Australia tomorrow and Nonfarm payrolls at the end of the week for the US. This will be highly important data in respect of whether we may see action from the Fed as early as September this year.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
AUD/USD making a top and thus sell it?
The rally is now consolidating and question now is whether this is a position to sell? Currency Analyst at BTMU Lee Hardman explained, “Renewed weakness in commodity prices highlight that the downward adjustment for the Australian dollar may not yet be complete, and is increasing the likelihood of further RBA easing”
Yesterday, analysts at UOB Group explained, "While we are not ruling out another leg lower to 0.7230, the current price action appears to be the early stages of a bottoming process. In other words, it is getting increasingly likely that the current bearish AUD phase that started late last month is close to an end. "
However, post the RBA and subsequent rally, Karen Jones, chief analyst at Commerzbank explained that failures at 0.7438/54, the 23.6% retracement short term resistance line, will suggest that the market remains still offered. "Above 0.7454 will trigger recovery to the 0.7584 55 day ma."
AUD/USD is consolidating the upside on the back of last night's RBA meeting and statement which has allowed for the Aussie to rally on the back of Stevens when he said that the Aussie was adjusting to declines in commodity prices instead of saying that further falls in the Aussie were likely and necessary. With the policy unchanged, for now, the statement said that inflation was consistent with the target and that employment has been somewhat stronger as week.
The Aussie was already better bid on earlier demand in Tokyo wit the release of the Retail sales that came in 0.7% and better than the consensus of 0.4% while the trade balance showed an improvement on consensus, with both imports and exports increasing at 4% and 3% respectively.
Key data events this week
Meanwhile, we await the unemployment data from Australia tomorrow and Nonfarm payrolls at the end of the week for the US. This will be highly important data in respect of whether we may see action from the Fed as early as September this year.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
AUD/USD making a top and thus sell it?
The rally is now consolidating and question now is whether this is a position to sell? Currency Analyst at BTMU Lee Hardman explained, “Renewed weakness in commodity prices highlight that the downward adjustment for the Australian dollar may not yet be complete, and is increasing the likelihood of further RBA easing”
Yesterday, analysts at UOB Group explained, "While we are not ruling out another leg lower to 0.7230, the current price action appears to be the early stages of a bottoming process. In other words, it is getting increasingly likely that the current bearish AUD phase that started late last month is close to an end. "
However, post the RBA and subsequent rally, Karen Jones, chief analyst at Commerzbank explained that failures at 0.7438/54, the 23.6% retracement short term resistance line, will suggest that the market remains still offered. "Above 0.7454 will trigger recovery to the 0.7584 55 day ma."