17 Mar 2015
AUD/USD bearish, awaiting a break of 0.7600 – Scotiabank
FXStreet (Barcelona) - With RBA minutes hinting towards a easing bias, Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, sees potential for further declines in AUD/USD, awaiting a break of 0.7600 levels.
Key Quotes
“AUD is up a modest 0.2% as we approach the NA session, having recovered from RBA-driven pressure in response to the minutes release. The minutes’ dovish tone detailed prior concerns regarding ‘subdued’ labor markets and spare capacity, with limited wage pressure helping to offset the inflationary impact of a lower exchange rate.”
“The bias remains titled toward further easing, albeit with a reduced sense of urgency as policymakers seek to assess incoming data.”
“AUDUSD short-term technicals: bearish—RSI at 41 leaves ample space for further downside, with broad concurrence among signals hinting to further decline.”
“Near term gains are likely to be challenged above 0.7720. We await a break below 0.7600.”
Key Quotes
“AUD is up a modest 0.2% as we approach the NA session, having recovered from RBA-driven pressure in response to the minutes release. The minutes’ dovish tone detailed prior concerns regarding ‘subdued’ labor markets and spare capacity, with limited wage pressure helping to offset the inflationary impact of a lower exchange rate.”
“The bias remains titled toward further easing, albeit with a reduced sense of urgency as policymakers seek to assess incoming data.”
“AUDUSD short-term technicals: bearish—RSI at 41 leaves ample space for further downside, with broad concurrence among signals hinting to further decline.”
“Near term gains are likely to be challenged above 0.7720. We await a break below 0.7600.”