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AUD/USD succumbs to the bears in RBA aftermath

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 3, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - Overnight, the RBA left rates steady at 2.0% and the Aussie rallied 0.5% but ran into supply with a strong greenback across the board.

    The price was drifting on the bid in early Asia from the mid point of the 0.71 handle and was propelled on the event to score territory above the 0.7200 level scoring a high of 0.7219. However, the RBA re-introduced an easing bias, and while this may have been a reluctant cautionary measure that was mostly ignored and presumed a reason to be bid, markets are now starting to price in the possibility of subsequent action from the RBA in December if domestic credit growth begins to tail off combined with continued external headwinds.

    The RBA will update its forecasts in its Statement on Monetary Policy on Friday before the next policy meeting on December 1st. Now all eyes are back on the US and Nonfarm Payrolls at the end of the week.

    AUD/USD levels

    Technically, AUD/USD is en route back towards the 55 day moving average at 0.7141again after topping out on the 0.72 handle and unable to break up convincingly with the 0.7385 Fibo retracement of the 2014-2015 downtrend and early October highs way off in the distance keeping a bearish lid on things.

    To the downside, we are in familiar territory and ranges until 0.7066. This area of support guards the medium term target for the September lows at 0.6940 with 0.6774 2004 low on the wide.
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