16 Feb 2015
AUD/USD: Moving into a technical correction?
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7776 with a high of 0.7796 and a low of 0.7756.
AUD/USD's downside momentum has faded with the technicals moving into corrective mode. For the moment, AUD/USD is consolidating the upside ok the move from last week off the lows in the 0.7640's ahead of a key week full of risk. The first set of risk comes from Europe in the Eurogroup meeting. There is growing pessimism from the sceptics who feel an agreement will not be reached today. Varoufakis has already met with Eurogroup chief Jeroen Dijsselbloem over the weekend, ahead of today’s Eurogroup meeting that is underway and apparently it was brisk and indicative of the mood. In any case, the Aussie is subject to the outcomes of this scenario, benefitting from a risk on mood depending on the conclusions
Then, we are back to Central Banks and the divergence between the Fed and RBA. Today we start with the RBA's minutes. However, this may not come as much of an event given we may not get anything other than what we already heard from Stevens last week in his Statement of Monetary Policy that was followed by over two hours of QnA. However, Valeria Bednarik, chief analyst at FXStreet explained that should the Central Bank leave the doors open for another rate cut, the Aussie may extend its fall to fresh year lows this week. We then get set for the FOMC's minutes further into the week. Technically, as mentioned, the pair is moving into a technical correction formation but stalling ahead of psychlogical 0.7800 level.
AUD/USD's downside momentum has faded with the technicals moving into corrective mode. For the moment, AUD/USD is consolidating the upside ok the move from last week off the lows in the 0.7640's ahead of a key week full of risk. The first set of risk comes from Europe in the Eurogroup meeting. There is growing pessimism from the sceptics who feel an agreement will not be reached today. Varoufakis has already met with Eurogroup chief Jeroen Dijsselbloem over the weekend, ahead of today’s Eurogroup meeting that is underway and apparently it was brisk and indicative of the mood. In any case, the Aussie is subject to the outcomes of this scenario, benefitting from a risk on mood depending on the conclusions
Then, we are back to Central Banks and the divergence between the Fed and RBA. Today we start with the RBA's minutes. However, this may not come as much of an event given we may not get anything other than what we already heard from Stevens last week in his Statement of Monetary Policy that was followed by over two hours of QnA. However, Valeria Bednarik, chief analyst at FXStreet explained that should the Central Bank leave the doors open for another rate cut, the Aussie may extend its fall to fresh year lows this week. We then get set for the FOMC's minutes further into the week. Technically, as mentioned, the pair is moving into a technical correction formation but stalling ahead of psychlogical 0.7800 level.