4 Aug 2015
AUD/USD bid on good data results before RBA
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7286 with a high of 0.7294and a low of 0.7263.
AUD/USD has popped higher and found demand in Tokyo trade on the back of key data events. Retail sales come in 0.7% and better than the consensus of 0.4% while the trade balance showed an improvement on consensus, with both imports and exports increasing at 4% and 3% respectively.
RBA: how dovish will they be?
The market is prepared for a no change from the RBA later today. Jane Foley, Senior Currency Strategist at Rabobank, explained "This week’s RBA decision comes against the backdrop of intense concerns about Chinese growth projections and increased volatility in iron ore and coal prices. A glut of supply combined with concerns about Chinese growth has combined to recently take prices of both commodities to 10 year lows. Having enjoyed a brief surge last week, the price of iron ore has slipped again today on the back of soft Chinese PMI data."
Key data events this week
Meanwhile, we await the unemployment data from Australia tomorrow and Nonfarm payrolls at the end of the week for the US. This will be highly important data in respect of whether we may see action from the Fed as early as September this year.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
AUD/USD: bearish phase close to an end?
AUD/USD remains bid above the base of the two-year channel at 0.7188 on major support from the long term Fibonacci retracement at 0.7185 and the 14 year support line at 0.7144. 21st July highs come as key resistance at 0.7450/54. Valera Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the technical picture is neutral-to-bearish as the technical indicators head slightly lower below their mid-lines whilst the 20 SMA is for the most flat around 0.7300.
Analysts at UOB Group explained, "While we are not ruling out another leg lower to 0.7230, the current price action appears to be the early stages of a bottoming process. In other words, it is getting increasingly likely that the current bearish AUD phase that started late last month is close to an end. "
AUD/USD has popped higher and found demand in Tokyo trade on the back of key data events. Retail sales come in 0.7% and better than the consensus of 0.4% while the trade balance showed an improvement on consensus, with both imports and exports increasing at 4% and 3% respectively.
RBA: how dovish will they be?
The market is prepared for a no change from the RBA later today. Jane Foley, Senior Currency Strategist at Rabobank, explained "This week’s RBA decision comes against the backdrop of intense concerns about Chinese growth projections and increased volatility in iron ore and coal prices. A glut of supply combined with concerns about Chinese growth has combined to recently take prices of both commodities to 10 year lows. Having enjoyed a brief surge last week, the price of iron ore has slipped again today on the back of soft Chinese PMI data."
Key data events this week
Meanwhile, we await the unemployment data from Australia tomorrow and Nonfarm payrolls at the end of the week for the US. This will be highly important data in respect of whether we may see action from the Fed as early as September this year.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
AUD/USD: bearish phase close to an end?
AUD/USD remains bid above the base of the two-year channel at 0.7188 on major support from the long term Fibonacci retracement at 0.7185 and the 14 year support line at 0.7144. 21st July highs come as key resistance at 0.7450/54. Valera Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the technical picture is neutral-to-bearish as the technical indicators head slightly lower below their mid-lines whilst the 20 SMA is for the most flat around 0.7300.
Analysts at UOB Group explained, "While we are not ruling out another leg lower to 0.7230, the current price action appears to be the early stages of a bottoming process. In other words, it is getting increasingly likely that the current bearish AUD phase that started late last month is close to an end. "