8 May 2015
AUD/USD: Choppiness around RBA statement
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7875 with a high of 0.7928 and a low of 0.7869.
AUD/USD spiked on the back of the RBA minutes and up through the 0.78 handle to aforementioned highs but has since dropped back to create session lows capped by the 0.7920 territory resistance. The RBA have offered a bearish outlook while guarding their intentions on interest rates.
The statement offered an outlook of underlying inflation as seen 2.5 pct at end 2015, 1.75-2.75 pct for end 2016 and mid 2017 while the Central Bank expects wage growth to stay contained, but not to fall below inflation. Meanwhile, we will look ahead to the Nonfarm Payrolls from the US tomorrow as the showdown to close another busy week down for the major.
Technically, a close above 0.8068 would initiate a deeper recovery to the 0.8247/38.2% retracement of the move down from September 2014 and the 0.8295 2015 peak, as suggested by Karen jones, chief analyst at Commerzbank. To the downside, 0.7790 comes as key support.
AUD/USD spiked on the back of the RBA minutes and up through the 0.78 handle to aforementioned highs but has since dropped back to create session lows capped by the 0.7920 territory resistance. The RBA have offered a bearish outlook while guarding their intentions on interest rates.
The statement offered an outlook of underlying inflation as seen 2.5 pct at end 2015, 1.75-2.75 pct for end 2016 and mid 2017 while the Central Bank expects wage growth to stay contained, but not to fall below inflation. Meanwhile, we will look ahead to the Nonfarm Payrolls from the US tomorrow as the showdown to close another busy week down for the major.
Technically, a close above 0.8068 would initiate a deeper recovery to the 0.8247/38.2% retracement of the move down from September 2014 and the 0.8295 2015 peak, as suggested by Karen jones, chief analyst at Commerzbank. To the downside, 0.7790 comes as key support.