19 Nov 2013
AUD/USD steady on 0.9420 until when?
FXstreet.com (London) - AUD/USD has fallen away from a high of 0.9449 and is trading within a 20-pip range around 0.9420 after a non-event RBA minutes.
However, there is plenty of stimulus coming up, but meanwhile, Tim Davis, Global Strategist, Rates and FX Research at TD Securities said, yet, notably, the minutes included that the ‘A$ remained uncomfortably high’ (as echoed by Governor Glenn Stevens earlier this month). “In addition, while the RBA included their usual comment that they would not ‘close off the possibility of reducing it (rates)further’, they excluded their 2nd part of the mantra that we should not interpret the signal as ‘an imminent intention to reduce them (rates)…We continue to target an unchanged cash rate of 2.5% for the rest of the year until +25bps for Nov 2014”. Meanwhile, the calendar is relatively light before Bernanke speaking tonight, US CPI on Wed and RBA FX transactions on Thursday are worth a glance in case the outcome is different to the monthly average of $400m-$700m. Also, on Thursday, RBA Governor Stevens is speaking at a financial markets conference dinner on the 30 year anniversary of the floating of the AUD (which for some of us doesn’t seem that long ago).
AUD/USD Levels
The 20 DMA is 0.9471, 0.9443, 0.9660. RSI (14) reads 58.88. Supports are ascending from 0.9260, 0.9282, 0.9305, 0.9343 and 0.9400. Spot is 0.9417 with resistances at 0.9421, 0.9438, 0.9482 and 0.9509.
However, there is plenty of stimulus coming up, but meanwhile, Tim Davis, Global Strategist, Rates and FX Research at TD Securities said, yet, notably, the minutes included that the ‘A$ remained uncomfortably high’ (as echoed by Governor Glenn Stevens earlier this month). “In addition, while the RBA included their usual comment that they would not ‘close off the possibility of reducing it (rates)further’, they excluded their 2nd part of the mantra that we should not interpret the signal as ‘an imminent intention to reduce them (rates)…We continue to target an unchanged cash rate of 2.5% for the rest of the year until +25bps for Nov 2014”. Meanwhile, the calendar is relatively light before Bernanke speaking tonight, US CPI on Wed and RBA FX transactions on Thursday are worth a glance in case the outcome is different to the monthly average of $400m-$700m. Also, on Thursday, RBA Governor Stevens is speaking at a financial markets conference dinner on the 30 year anniversary of the floating of the AUD (which for some of us doesn’t seem that long ago).
AUD/USD Levels
The 20 DMA is 0.9471, 0.9443, 0.9660. RSI (14) reads 58.88. Supports are ascending from 0.9260, 0.9282, 0.9305, 0.9343 and 0.9400. Spot is 0.9417 with resistances at 0.9421, 0.9438, 0.9482 and 0.9509.