AUD/USD continued to grind higher overnight and has broken to fresh week highs this Friday morning at 0.7643. The USD continues to be weak and the Australian Dollar is taking advantage of this.
The rebound in WTI OIL to $42 and stronger Global stock markets post the Bank of England stimulus last night has helped create a strong risk on feel. The Australian Dollar does well in this environment and helped weak economic data on the June retail sales be ignored.
The next big hurdle is the RBA Statement of Monetary Policy released at 11:30am AEST. This quarterly update from the RBA will give economic projections and justifications for the rate cut on Tuesday. The market will be also searching for clues as to the how far the central bank expects to cut rate further.
GBP/USD was the big mover overnight as the Bank of England surprised the market with not only a rate cut but expanded QE program of 60bn Pounds and a corporate Bond buying program of 10bn Pounds.
This aggressive action was in response the to the dramatic drop in business confidence post Brexit and the BOE was trying to get out in front of the issue.
| AUD/USD |
8/5/2016 12:48 AM |
|
|
Trend daily chart  (=) |
Trend weekly chart  (=) |
|
AUD/USD Intraday: supported by a rising trend line. |
|
Pivot: 0.7570
Our preference: long positions above 0.7570 with targets @ 0.7640 & 0.7675 in extension.
Alternative scenario: below 0.7570 look for further downside with 0.7550 & 0.7520 as targets.
Comment: the RSI lacks downward momentum.
Supports and resistances:
0.7705 **
0.7675 ***
0.7640 ***
0.7632 Last
0.7570 ***
0.7550 ***
0.7520 *** |
|
|
