2 Dec 2014
AUD/USD lacking conviction although supported on the bid - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that considering the strength of gold came-back and dollar generalized weakness, Aussie recovery has been shallow to say the least.
Key Quotes:
“The AUD/USD posted a daily high of 0.8531, trading ahead of Asian opening around the 0.8500 level”.
“The upcoming session will be fulfilled with local data, including housing readings and RBA monthly economic meeting, where the Central Bank is expected to leave the official cash rate unchanged at 2.5%”.
“With the housing market depressed, building permits may be more relevant than the Central Bank itself: the sector needs to improve to allow further stimulus in the form of rate cuts, to boost other sectors of the economy also having trouble”.
“The AUD/USD 1 hour chart shows price holding above a mild bullish 20 SMA and momentum heading higher above 100, but RSI retracing towards 50”.
“In the 4 hours chart 20 SMA capped the upside around mentioned daily high, while indicators remain below their midlines, diverging from each other: some follow through above 0.8535 is required to see the pair advancing towards 0.8600 whilst below 0.8490 risk turns to the downside and a retest of the 0.8400 price zone”.
Key Quotes:
“The AUD/USD posted a daily high of 0.8531, trading ahead of Asian opening around the 0.8500 level”.
“The upcoming session will be fulfilled with local data, including housing readings and RBA monthly economic meeting, where the Central Bank is expected to leave the official cash rate unchanged at 2.5%”.
“With the housing market depressed, building permits may be more relevant than the Central Bank itself: the sector needs to improve to allow further stimulus in the form of rate cuts, to boost other sectors of the economy also having trouble”.
“The AUD/USD 1 hour chart shows price holding above a mild bullish 20 SMA and momentum heading higher above 100, but RSI retracing towards 50”.
“In the 4 hours chart 20 SMA capped the upside around mentioned daily high, while indicators remain below their midlines, diverging from each other: some follow through above 0.8535 is required to see the pair advancing towards 0.8600 whilst below 0.8490 risk turns to the downside and a retest of the 0.8400 price zone”.