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GBP/AUD, yet another 2 big figure daily drop

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    GBP/AUD has had one of the biggest moves (of over 200 pips again) since 2016's opening turmoil and on the back of the weekend news in the UK with the Boris story.

    UK's Boris Johnson backs up Brexit, sends Pound sharply lower

    UK prime minister, David Cameron, recently announced referendum date as the 23rd June 2016 on whether to stay in the EU. However, Boris Johnson, Mayor of London and Tory, who is highly popular with the UK's public, (tipped to be prime minister one day) is backing the "out" camp and is campaigning for a Brexit, weighing on the British pound on Asia today and right across the board.

    Aussie Capex is key

    Meanwhile, for the week ahead in the Australia, the main event is Capex Q4. "Dec qtr to continue unwinding mining investment; the 5th estimate of 2015/16 is now half-actual half-estimate while 2016/17 capex is a total wildcard. Nevertheless, continued lacklustre services based investment intentions will be closely eyed by the markets," explained analysts at TD Securities.

    GBP/AUD levels

    GBP/AUD has been in a bearish trend since August 2015 business from highs of 2.2372. The death cross on the daily sticks occurred in January's business and the price broke below the 20 dma again last week in yet another 200 pip sell off that is frequently this year on a daily stick. Today's low crossed below the pivot of 2.009 and was only held up at S2 at 1.9914, guarding the handle and lower towards S3 at 1.9822. RSI (14) is 39.51.
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