AUD/USD vulnerable to breakup at current levels - AmpGFX

Analysts at Amplifying Global FX Capital see a risk that the AUD will likely break up on a more optimistic RBA assessment next week after rallying strongly in the recent past.

Key Quotes

“The AUD/USD chart pattern is set up to generate a significant shift in tone should the market sense a hint of less dovishness from the RBA.  It is not far below a major trend line that defines a long period of consolidation at lower levels in recent years.”

“We are not convinced that the AUD will begin a renaissance.  We note that the high levels of household debt in Australia and the halting housing market could make Australian consumers very sensitive to even a modest rise in mortgage rates.”