Daily Outlook

AUDUSD has traded inside a bullish structure starting from July27. Overnight, price hit the 0.7660 key resistance level, which has been tested five times in the past few weeks. So far the key level has held and we are steady at 0.7660 as we enter Tuesday Trade. NAB June Business Confidence released later this morning will not include the latest RBA rate cut but will be during the year highs on the ASX 200 and should be confirm the positive outlook.

Oil price leaped above $42, recovering from the bear market at the end of July. The driving power comes from a report indicating OPEC would consider a production freeze. However, the production freeze was raised several times by OPEC before, but no agreement has been reached. From the Russian side, they don’t think it is necessary to cap the oil production at this price level. Even though the restraint of supply side is unclear, OPEC chairman Mohammed AI Sada implied the demand would surge in Q3 and Q4, which will fuel the oil price.

USDJPY led the post payrolls charge in the greenback, breaking above Y102.00 resistance. The price now hovers near Y102.30 consolidating gains and waiting for the Japanese open today. The recent downtrend has key resistance at Y103 and the USD/JPY is a critical element for any sustainable USD rally.

AUD/NZD intraday: as long as 1.0680 is support look for 1.0770 Our pivot point stands at 1.0680. Our preference:as long as 1.0680 is support look for 1.0770. Alternative scenario: below 1.0680, expect 1.0650 and 1.0640. Comment: the RSI is above 50. The MACD is positive and below its signal line. The pair could retrace. Moreover, the pair is trading above both its 20 and 50 MAs (respectively at 1.0702 and 1.0651). Supports and resistances: 1.0810 ** 1.0790 * 1.0770 ** 1.0760 1.0713 last 1.0690 1.0680 ** 1.0650 * 1.0640 **

Ticker : AUDNZD

AUD/USD Intraday: under pressure. Pivot: 0.7665 Our preference: short positions below 0.7665 with targets @ 0.7595 & 0.7570 in extension. Alternative scenario: above 0.7665 look for further upside with 0.7705 & 0.7725 as targets. Comment: the RSI shows downside momentum. Supports and resistances: 0.7725 ** 0.7705 *** 0.7665 *** 0.7632 Last 0.7595 *** 0.7570 *** 0.7545 ***

Ticker : AUD