25 Aug 2015
AUD/USD: Full load down on major events
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7180 with a high of 0.7250 and a low of 0.7128.
AUD/USD has been supported on the PBoC their RRR by 50bps to 18.00% with additional cuts for individual sectors. The Central Bank also cut the deposit rate by 25bps to 1.75% and lending interest rates by 25bps to 4.60%. The cut to interest rates were a surprise and will likely add further pressure to the Yuan and should bolster the global markets and support the Shanghai Composite Index of shares.
Latest moves from PBoC support AUD/USD related sectors
This latest move from PBoC in the US session, and in addition to PBOC to injecting 150bn yuan via 7-day reverse repos, has improved sentiment in the commodity and EM sector, with iron ore and oil bouncing off multi-year lows and is supporting the Aussie. However, there was already an improvement in sentiment and the greenback has been benefiting with the USD-index in the green.
US data pressures AUD/USD recovery
The US data today has also been kind to the US dollar and the highest US Consumer Confidence Index since January coming in at 101.5 vs consensus 93.4 underpinned the strength along with better than expected Services PMI arriving in at 55.2 vs. consensus at 55.1. New home Sales was a miss mind you at 0.507m vs 0.520m expected.
AUD/USD: what next?
We now await RBA's Stevens in the Asian shift who will be making a speech and the Asian reaction to the PBoC's recent move to bolster liquidity in the Chinese economy. Then, for tomorrow, US Durable goods and the DOE crude oil inventories will be of keen interest as well as more Fed talk from Dudley, having received a hawkish rhetoric from Lockhart again yesterday who explained the Fed hikes should commence this year. However, some economists are not so sure, and this could continue to pressure the dollar in to submission as markets begin to unwind the value that has been priced in to an imminent Fed hike and support AUD/USD going forward.
AUD/USD technical outlook
Technically, the base of the two-year channel at 0.7180/60 remains like a magnet on the sticks and still offers support on downside pressure ahead of 0.7140 support. On follow through to the downside, 0.7030 is the august low ahead of the 0.7016 March 2006 lows. These levels guard 0.7000 ahead of the 2004 June low of 0.6772 on the longer term targets.
AUD/USD has been supported on the PBoC their RRR by 50bps to 18.00% with additional cuts for individual sectors. The Central Bank also cut the deposit rate by 25bps to 1.75% and lending interest rates by 25bps to 4.60%. The cut to interest rates were a surprise and will likely add further pressure to the Yuan and should bolster the global markets and support the Shanghai Composite Index of shares.
Latest moves from PBoC support AUD/USD related sectors
This latest move from PBoC in the US session, and in addition to PBOC to injecting 150bn yuan via 7-day reverse repos, has improved sentiment in the commodity and EM sector, with iron ore and oil bouncing off multi-year lows and is supporting the Aussie. However, there was already an improvement in sentiment and the greenback has been benefiting with the USD-index in the green.
US data pressures AUD/USD recovery
The US data today has also been kind to the US dollar and the highest US Consumer Confidence Index since January coming in at 101.5 vs consensus 93.4 underpinned the strength along with better than expected Services PMI arriving in at 55.2 vs. consensus at 55.1. New home Sales was a miss mind you at 0.507m vs 0.520m expected.
AUD/USD: what next?
We now await RBA's Stevens in the Asian shift who will be making a speech and the Asian reaction to the PBoC's recent move to bolster liquidity in the Chinese economy. Then, for tomorrow, US Durable goods and the DOE crude oil inventories will be of keen interest as well as more Fed talk from Dudley, having received a hawkish rhetoric from Lockhart again yesterday who explained the Fed hikes should commence this year. However, some economists are not so sure, and this could continue to pressure the dollar in to submission as markets begin to unwind the value that has been priced in to an imminent Fed hike and support AUD/USD going forward.
AUD/USD technical outlook
Technically, the base of the two-year channel at 0.7180/60 remains like a magnet on the sticks and still offers support on downside pressure ahead of 0.7140 support. On follow through to the downside, 0.7030 is the august low ahead of the 0.7016 March 2006 lows. These levels guard 0.7000 ahead of the 2004 June low of 0.6772 on the longer term targets.