13 Feb 2015
AUD/USD: Heavy on Stevens dovish rhetoric ahead of 0.7720 support
FXStreet (Guatemala) - Ahead of press conference, AUD/USD is pressured to the downside as RBA's Stevens takes the headlines offering a dovish rhetoric with such comments as suggesting inflation is low and "appears" and "likely" to remain so.
AUD/USD has much of such language already priced in and the bears are not adding volume to their positions in any great way at the moment with the pair offered and heading just 10 pips lower so far. However, we await the press conference that might get things going with possible question on the Aussie, housing and rates.
Stevens said in is speech so far, amongst other comments, that monetary policy still has capacity to give additional support to economy and without making any commitments, says the bank's forecasts assume a lower path for interest rates.
From a price perspective, Stevens said that the Aussie is likely to fall further and looking to the charts, the price action overnight reflects a temporary sell off in the Greenback and 0.7781 caps the pair for the mean time with the downside yet to play for. 0.7720 marks a key support from where the pair dropped yesterday on the disappointment in the labour market for Australia.
AUD/USD has much of such language already priced in and the bears are not adding volume to their positions in any great way at the moment with the pair offered and heading just 10 pips lower so far. However, we await the press conference that might get things going with possible question on the Aussie, housing and rates.
Stevens said in is speech so far, amongst other comments, that monetary policy still has capacity to give additional support to economy and without making any commitments, says the bank's forecasts assume a lower path for interest rates.
From a price perspective, Stevens said that the Aussie is likely to fall further and looking to the charts, the price action overnight reflects a temporary sell off in the Greenback and 0.7781 caps the pair for the mean time with the downside yet to play for. 0.7720 marks a key support from where the pair dropped yesterday on the disappointment in the labour market for Australia.