3 May 2016
AUD/USD: bullish technically ahead of RBA - FXStreet
Valeria Bednarik, chief analyst at FXStreet noted that the Australian dollar bounced again from the 0.7600 region against the greenback, advancing up to 0.7663 intraday, on the back of dollar's weakness and a sharp advance in gold prices.
Key Quotes:
"The AUD/USD pair, however, saw a limited rally ahead of the upcoming RBA decision, due at 04:30 GMT this Tuesday. The Reserve Bank of Australia has been largely expected to remain on hold, until the release of the first quarter inflation figures last week.
Core inflation fell to its lowest in over 15 years, triggering speculation that the Central Bank may cut rates, particularly to prevent further Aussie appreciation. Expectations are of an on-hold stance and indeed, a rate cut may see the AUD/USD pair finally breaking lower.
Nevertheless, the technical picture is mild bullish at the time being, as in the 4 hours chart, the price holds near the mentioned high after advancing above its 20 SMA and the 200 EMA, whilst the technical indicators head north after bouncing from their mid-lines."
Key Quotes:
"The AUD/USD pair, however, saw a limited rally ahead of the upcoming RBA decision, due at 04:30 GMT this Tuesday. The Reserve Bank of Australia has been largely expected to remain on hold, until the release of the first quarter inflation figures last week.
Core inflation fell to its lowest in over 15 years, triggering speculation that the Central Bank may cut rates, particularly to prevent further Aussie appreciation. Expectations are of an on-hold stance and indeed, a rate cut may see the AUD/USD pair finally breaking lower.
Nevertheless, the technical picture is mild bullish at the time being, as in the 4 hours chart, the price holds near the mentioned high after advancing above its 20 SMA and the 200 EMA, whilst the technical indicators head north after bouncing from their mid-lines."