21 Jul 2015
AUD/USD: Strong, awaits CPI's and Stevens speech
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7423 with a high of 0.7450 and low of 0.7339.
AUD/USD was initially offered yesterday in Asia when the RBA minutes were released but sentiment changed around dramatically when the pair lifted off from 0.7360 and rallied close to 0.7450 the highs. Supply leaves the efforts on the 0.74 handle stripped down to test the support of the 0.7420 territory with 90 pips banked for the US session. Continued rallies, as explained by Karen Jones, chief analyst at Commerzbank should ideally remain contained by the 0.7563 short term resistance line to remain directly offered.
The RBA minutes were perceived as a non event with sentiment remains that the RBA will remain on hold for several months, the attentions are going to torn to tonights CPI's for Q2 and this will likely be more of a driver for the Aussie, where as today there was less risk appetite and broad weakness in the US dollar.
Analysts at TD Securities explained that a speech tonight from RBA Governor Stevens and the release of the Q2 CPI data will be crucial inputs for AUD’s trajectory from here. "A weaker-than-expected inflation reading will add to speculation that policymakers will be dragged into further easing as Australia’s terms of trade pressure mounts. Stevens, for his part, has been careful to maintain a fairly neutral outlook for policy, but we will scrutinize his comments carefully for any change in tone."
AUD/USD was initially offered yesterday in Asia when the RBA minutes were released but sentiment changed around dramatically when the pair lifted off from 0.7360 and rallied close to 0.7450 the highs. Supply leaves the efforts on the 0.74 handle stripped down to test the support of the 0.7420 territory with 90 pips banked for the US session. Continued rallies, as explained by Karen Jones, chief analyst at Commerzbank should ideally remain contained by the 0.7563 short term resistance line to remain directly offered.
The RBA minutes were perceived as a non event with sentiment remains that the RBA will remain on hold for several months, the attentions are going to torn to tonights CPI's for Q2 and this will likely be more of a driver for the Aussie, where as today there was less risk appetite and broad weakness in the US dollar.
Analysts at TD Securities explained that a speech tonight from RBA Governor Stevens and the release of the Q2 CPI data will be crucial inputs for AUD’s trajectory from here. "A weaker-than-expected inflation reading will add to speculation that policymakers will be dragged into further easing as Australia’s terms of trade pressure mounts. Stevens, for his part, has been careful to maintain a fairly neutral outlook for policy, but we will scrutinize his comments carefully for any change in tone."