12 Feb 2016
Bullish/dovish Stevens supports Aussie higher
AUD/USD is bid on the back of Stevens arriving to the scene with his testimony before the House Representatives' Standing Committee on Economics.
Stevens said that the economy is likely to expand at a moderate pace, although they are watching financial market turbulence and the labour market. while lower inflation (underlying measures are low) could provide scope for further easing if needed. Also, he said that easy monetary policy and lower AUD is helping growth.
AUD/USD has been broadly trading within a relatively wide range between August 2015 and today within a channel between 0.7420 (uncomfortably high for the RBA) and 0.6827, 14th Jan low. Of recent sessions, market turmoil has seen the price recover from 0.6973 and up to and through the 100 dma at 0.7140.
AUD/USD levels
Technically, AUD/USD had been hovering around the 0.71 handle overnight and within the vicinity of the 200 sma on the hourly chart. R2 is at 0.7181 and R3 at is located at 0.7234 while the recent high of 0.7242 is a key upside target before the 200 dma at 0.7307. To the downside, S1 stands at 0.7056, S2 at 0.7003 and S3 at 0.6967. RSI on the 4hr is at 41.70 and neutral.
Stevens said that the economy is likely to expand at a moderate pace, although they are watching financial market turbulence and the labour market. while lower inflation (underlying measures are low) could provide scope for further easing if needed. Also, he said that easy monetary policy and lower AUD is helping growth.
AUD/USD has been broadly trading within a relatively wide range between August 2015 and today within a channel between 0.7420 (uncomfortably high for the RBA) and 0.6827, 14th Jan low. Of recent sessions, market turmoil has seen the price recover from 0.6973 and up to and through the 100 dma at 0.7140.
AUD/USD levels
Technically, AUD/USD had been hovering around the 0.71 handle overnight and within the vicinity of the 200 sma on the hourly chart. R2 is at 0.7181 and R3 at is located at 0.7234 while the recent high of 0.7242 is a key upside target before the 200 dma at 0.7307. To the downside, S1 stands at 0.7056, S2 at 0.7003 and S3 at 0.6967. RSI on the 4hr is at 41.70 and neutral.