3 May 2016
AUD/USD: bulls set-up ahead of the RBA
AUD/USD is currently in consolidation of the bid after a day of U.S. dollar weakness that has enabled the Aussie to continue with its northern trajectory.
AUD/USD rose from 0.7587 at the end of April's business and has recovered all the way through the 200 sma on the 4hr sticks at 0.7636 to score highs of 0.7671 in the US session. Industrial metals and also soft US ISM numbers have propelled the Aussie forward ahead of the RBA today that is going to be the main market focus.
The RBA has a task on its hands in the face of a poor inflationary Q1 conditions and never ending headwinds from China (albeit slightly less violent of late). However, there is scope for the Bank to cur rates today due to tightening credit conditions and a strong Aussie while the jobs market has not been as impressive as 2015.
AUD/USD levels
Valeria Bednarik explained that the technical picture is mild bullish at the time being, as in the 4 hours chart, the price holds near the mentioned highs, "After advancing above its 20 SMA and the 200 EMA, whilst the technical indicators head north after bouncing from their mid-lines."
AUD/USD rose from 0.7587 at the end of April's business and has recovered all the way through the 200 sma on the 4hr sticks at 0.7636 to score highs of 0.7671 in the US session. Industrial metals and also soft US ISM numbers have propelled the Aussie forward ahead of the RBA today that is going to be the main market focus.
The RBA has a task on its hands in the face of a poor inflationary Q1 conditions and never ending headwinds from China (albeit slightly less violent of late). However, there is scope for the Bank to cur rates today due to tightening credit conditions and a strong Aussie while the jobs market has not been as impressive as 2015.
AUD/USD levels
Valeria Bednarik explained that the technical picture is mild bullish at the time being, as in the 4 hours chart, the price holds near the mentioned highs, "After advancing above its 20 SMA and the 200 EMA, whilst the technical indicators head north after bouncing from their mid-lines."