7 May 2015
AUD/USD resistance at 0.8000 under threat – OCBC
FXStreet (Barcelona) - Emmanuel NG, FX Strategist at OCBC Bank, notes that rate differentials post RBA continue to shift in favour of the Aussie, hence AUD/USD might try to break above the key resistance at 0.8000.
Key Quotes
“This morning, the April labor market numbers disappointed relative to prior expectations but we think the upward revisions in the previous month’s readings should quash any implied negativity. Note that rate differential movements post-RBA have also continued to shift in favor of the AUD.”
“Although China is still seen contemplating further stimulus, market chatter concerning a re-pricing of global deflation may keep the 0.8000 resistance under threat.”
Key Quotes
“This morning, the April labor market numbers disappointed relative to prior expectations but we think the upward revisions in the previous month’s readings should quash any implied negativity. Note that rate differential movements post-RBA have also continued to shift in favor of the AUD.”
“Although China is still seen contemplating further stimulus, market chatter concerning a re-pricing of global deflation may keep the 0.8000 resistance under threat.”