2 Dec 2014
AUD/USD: Risk returns to the downside as RBA-inspired spike short-lived
FXStreet (Bali) - AUD/USD has seen a short-lived spike towards 0.8508 after the RBA decided to maintain interest rates unchanged at 2.5%, while retaining the neutral bias.
After the dust settled, the Aussie gave up all its gains, currently trading down at 0.8470, with the market sentiment still overly bearish as proven by the AUD failure to sustain recent gains on either China rate cut or Capex.
Technically, and prior to the RBA outcome, Valeria Bednarik, Chief Analyst at FXStreet, wrote: "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" Valeria added.
After the dust settled, the Aussie gave up all its gains, currently trading down at 0.8470, with the market sentiment still overly bearish as proven by the AUD failure to sustain recent gains on either China rate cut or Capex.
Technically, and prior to the RBA outcome, Valeria Bednarik, Chief Analyst at FXStreet, wrote: "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" Valeria added.