9 Jul 2015
AUD/USD: Troubled on Greece, China and RBA outlook
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7424 with a high of 0.7460 and a low of 0.7370.
AUD/USD has staged a recovery from the lows of yesterday's trade where China suspending trading across 50% of 2754 listed firms on the China Shanghai composite Index that opened down 6.9% at 3467.40. Today, Wall Street had its own technical glitches, but nothing as severe and was rectified before the close in order to ensure closing prices could be allocated.
AUD/USD fundamentals
The Aussie is broadly in a weak environment, with concerns mounting greatly over the Chinese economy and outlook, commodity prices and with an RBA intent on a lower currency and possibly needing to cut interest rates again this year to accommodate sluggish growth in Australia's own economy. Jane Foley, Senior Currency Strategist at Rabobank explained the concerns in China.
In respect of Greece, there was slightly less activity around fewer headlines today as markets prepare for the worst, or perhaps the best outcome for the EZ in the long run. But without speculation, for now, we await the Greek's to delivery on yet further promises and subsequent action from the Troika.
The latest development was a letter that was sent to the EU. Greece sent the ESM letter, requesting a loan facility to be used to meet Greece’s debt obligations and to ensure stability of the financial system, with an expressed desire to clear our outstanding arrears with the IMF and the Bank of Greece.
The letter also outlined the time frame for delivering the outstanding proposal as, "The Greek government will on Thursday 9 July at the latest set out in detail its proposals for a comprehensive and specific reform agenda for assessment by the three Institutions to be presented to the Euro Group."
AUD/USD is technically
Analysts at UOB Group explained that there is no change to their view and they continue to expect a move to 0.7350, likely in the next 1 to 2 days. Karen Jones, chief analyst at Commerzbank explained that they are also bearish and look for losses to the base of the 2 year channel at 0.7193 longer term. "Near term the market remains offered below the 0.7675 short term resistance line."
AUD/USD has staged a recovery from the lows of yesterday's trade where China suspending trading across 50% of 2754 listed firms on the China Shanghai composite Index that opened down 6.9% at 3467.40. Today, Wall Street had its own technical glitches, but nothing as severe and was rectified before the close in order to ensure closing prices could be allocated.
AUD/USD fundamentals
The Aussie is broadly in a weak environment, with concerns mounting greatly over the Chinese economy and outlook, commodity prices and with an RBA intent on a lower currency and possibly needing to cut interest rates again this year to accommodate sluggish growth in Australia's own economy. Jane Foley, Senior Currency Strategist at Rabobank explained the concerns in China.
In respect of Greece, there was slightly less activity around fewer headlines today as markets prepare for the worst, or perhaps the best outcome for the EZ in the long run. But without speculation, for now, we await the Greek's to delivery on yet further promises and subsequent action from the Troika.
The latest development was a letter that was sent to the EU. Greece sent the ESM letter, requesting a loan facility to be used to meet Greece’s debt obligations and to ensure stability of the financial system, with an expressed desire to clear our outstanding arrears with the IMF and the Bank of Greece.
The letter also outlined the time frame for delivering the outstanding proposal as, "The Greek government will on Thursday 9 July at the latest set out in detail its proposals for a comprehensive and specific reform agenda for assessment by the three Institutions to be presented to the Euro Group."
AUD/USD is technically
Analysts at UOB Group explained that there is no change to their view and they continue to expect a move to 0.7350, likely in the next 1 to 2 days. Karen Jones, chief analyst at Commerzbank explained that they are also bearish and look for losses to the base of the 2 year channel at 0.7193 longer term. "Near term the market remains offered below the 0.7675 short term resistance line."