A neutral tone from RBA Governor Lowe and not hints of further cuts in the RBA minutes from the October meeting have helped propel the AUD/USD back to 0.7700. The market has now held in a 0.7500-0.7700 range for the past 4 months so caution is likely as we approach the top end of the range once again. The market is looking ahead to Chinese Q3 GDP forecast at 6.7% y/y and then on to tomorrow September Australian Employment data.
Another big mover yesterday in the currency market was the Great British Pound GBP which rallied across the board as the UK government lawyer suggested that the MP’s will likely have to vote on the UK Brexit process. This has helped calm markets and prompted a short covering rally back to 1.2300 on the GBP/USD. UK CPI surged to 1.0% y/y as the effect of a sharply lower currency started to feed through from higher import prices. UK PM May is set to attend her first EU summit tomorrow.
| AUD/USD |
10/19/2016 12:38 AM |
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Trend daily chart  (=) |
Trend weekly chart  (=) |
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AUD/USD Intraday: watch 0.7690. |
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Pivot: 0.7640
Our preference: long positions above 0.7640 with targets at 0.7690 & 0.7710 in extension.
Alternative scenario: below 0.7640 look for further downside with 0.7610 & 0.7580 as targets.
Comment: the RSI lacks downward momentum.
Supports and resistances:
0.7730 ***
0.7710 **
0.7690 ***
0.7670 Last
0.7640 **
0.7610 **
0.7580 *** |
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