17 Aug 2015
AUD/USD: headwinds ahead of RBA minutes
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7376 with a high of 0.7389 and low of 0.7343.
AUD/USD remains robust and on form, climbing up once again despite the efforts in supply that took the Aussie from the 0.7380 level down to aforementioned lows. RBA's Stevens explained recently that the depreciation in the currency has done enough to sustain the countries economic growth and this has underpinned the Aussie at current levels despite the Chinese devaluations of the Yuan continued uncertainties over the economy.
The FT reported that the PBoC warned that there will be further two-way volatility in CNY at the start of this week, although so far the price in the Yuan is stable. Meanwhile, the IMF forecasts that Chinese economic growth to slow to 6.8% in 2015 and to 6.3% in 2016. We are awaiting the RBA minutes in the Asian session for a domestic take and then the US CPI's and the FOMC minutes later in the week will capture the markets focus for direction in the price.
AUD/USD 4hr chart levels
Technically, as noted by Valera Bednarik, chief analyst at FXStreet, "The 4 hours chart shows that the price develops above a bullish 20 SMA, although the technical indicators stand around their mid-lines, with the Momentum indicator presenting a strong bearish slope, coming from overbought levels, suggesting the pair may fall in the short term. In the same chart, the 200 SMA stands now around 0.7415, offering a strong dynamic resistance, and a line in the sand, as the pair has remained below it since late June. Some follow through beyond the MA should signal an upward continuation towards the 0.7500 region."
AUD/USD remains robust and on form, climbing up once again despite the efforts in supply that took the Aussie from the 0.7380 level down to aforementioned lows. RBA's Stevens explained recently that the depreciation in the currency has done enough to sustain the countries economic growth and this has underpinned the Aussie at current levels despite the Chinese devaluations of the Yuan continued uncertainties over the economy.
The FT reported that the PBoC warned that there will be further two-way volatility in CNY at the start of this week, although so far the price in the Yuan is stable. Meanwhile, the IMF forecasts that Chinese economic growth to slow to 6.8% in 2015 and to 6.3% in 2016. We are awaiting the RBA minutes in the Asian session for a domestic take and then the US CPI's and the FOMC minutes later in the week will capture the markets focus for direction in the price.
AUD/USD 4hr chart levels
Technically, as noted by Valera Bednarik, chief analyst at FXStreet, "The 4 hours chart shows that the price develops above a bullish 20 SMA, although the technical indicators stand around their mid-lines, with the Momentum indicator presenting a strong bearish slope, coming from overbought levels, suggesting the pair may fall in the short term. In the same chart, the 200 SMA stands now around 0.7415, offering a strong dynamic resistance, and a line in the sand, as the pair has remained below it since late June. Some follow through beyond the MA should signal an upward continuation towards the 0.7500 region."