27 Jul 2015
AUD/USD: Bears in control before FOMC this week
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7287 with a high of 0.7326 and a low of 0.7264.
AUD/USD is continuing soft and supply now takes the major down to the 0.7280 support zone, a break of which would open up the mid point of the handle and recent yearly lows. Fundamentally, the pair is suffering on copper and gold prices while China weighs also and until there is a shift in the global climate, the bearish theme will keep the price low, much to the desire of the RBA.
Today the durable goods orders were stronger than expectations which allowed the greenback to drift higher on the commodities board of currencies while we now await the outcome of this weeks FOMC and GDP numbers. The FOMC may be quite a neutral sounding tone despite a majority of economists surveyed expecting a rate hike in September. However, a bullish tone is likely to come of recent durable goods orders and general sentiment while the dollar is slightly weaker and at better levels for the US economy for the time being.
AUD/USD bears approach two-year channel base
Technically, AUD/USD came under increasing downside pressure last week and is now approaching the base of the 2 year channel at 0.7188., as Karen Jones, chief analyst at Commerzbank explained. "The outlook stays negative while below the 0.7513 downtrend. Below 0.7188 the market has major support in the form of a long term Fibonacci retracement at 0.7185 and the 14 year support line at .7144. We look for these to hold the downside on the initial test."
AUD/USD is continuing soft and supply now takes the major down to the 0.7280 support zone, a break of which would open up the mid point of the handle and recent yearly lows. Fundamentally, the pair is suffering on copper and gold prices while China weighs also and until there is a shift in the global climate, the bearish theme will keep the price low, much to the desire of the RBA.
Today the durable goods orders were stronger than expectations which allowed the greenback to drift higher on the commodities board of currencies while we now await the outcome of this weeks FOMC and GDP numbers. The FOMC may be quite a neutral sounding tone despite a majority of economists surveyed expecting a rate hike in September. However, a bullish tone is likely to come of recent durable goods orders and general sentiment while the dollar is slightly weaker and at better levels for the US economy for the time being.
AUD/USD bears approach two-year channel base
Technically, AUD/USD came under increasing downside pressure last week and is now approaching the base of the 2 year channel at 0.7188., as Karen Jones, chief analyst at Commerzbank explained. "The outlook stays negative while below the 0.7513 downtrend. Below 0.7188 the market has major support in the form of a long term Fibonacci retracement at 0.7185 and the 14 year support line at .7144. We look for these to hold the downside on the initial test."