4 Aug 2015
AUD/USD lined neutral up ahead of the RBA
FXStreet (Guatemala) - AUD/USD is stabilising the downside and currently trading at 0.7278 with a high of 0.7290 and a low of 0.7278.
AUD/USD is lined up ahead of a potentially busy day with retails sales and the key RBA decision and statement. The market is prepared for a hold and see, but will be keen on the type of rhetoric that may come of this meeting around for a gauge of future policy. There is some speculation that there will need to be further easing from the Central Bank against a back-drop of concerns in the Chinese market and commodity prices.
The recent Chinese PMI's have not helped the cause leading into this meeting around and will most likely hint to a bias of further rate cuts to come should there be a lack of a recovery in the prices of coal, iron ore and copper while the labour force and wages would otherwise remain at risk. However, surging property prices in some areas of the nation have underpinned the argument in the past that the RBA may be unwilling lower rates again. Meanwhile, as if there wasn't enough going on this week with the unemployment rate to follow for Australia, we are also holding out for Nonfarm Payrolls at the end of this week.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
AUD/USD bearish bias moving towards neutral
Valera Bednarik, chief analyst at FXStreet explained that the 1 hour chart presents an increasing bearish potential, as the technical indicators stand in negative territory, whilst the 20 SMA turned sharply lower above the current price.
"In the 4 hours chart, the technical picture is neutral-to-bearish as the technical indicators head slightly lower below their mid-lines whilst the 20 SMA is for the most flat around 0.7300. In the 4 hours chart, the technical picture is neutral-to-bearish as the technical indicators head slightly lower below their mid-lines whilst the 20 SMA is for the most flat around 0.7300."
AUD/USD is lined up ahead of a potentially busy day with retails sales and the key RBA decision and statement. The market is prepared for a hold and see, but will be keen on the type of rhetoric that may come of this meeting around for a gauge of future policy. There is some speculation that there will need to be further easing from the Central Bank against a back-drop of concerns in the Chinese market and commodity prices.
The recent Chinese PMI's have not helped the cause leading into this meeting around and will most likely hint to a bias of further rate cuts to come should there be a lack of a recovery in the prices of coal, iron ore and copper while the labour force and wages would otherwise remain at risk. However, surging property prices in some areas of the nation have underpinned the argument in the past that the RBA may be unwilling lower rates again. Meanwhile, as if there wasn't enough going on this week with the unemployment rate to follow for Australia, we are also holding out for Nonfarm Payrolls at the end of this week.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
AUD/USD bearish bias moving towards neutral
Valera Bednarik, chief analyst at FXStreet explained that the 1 hour chart presents an increasing bearish potential, as the technical indicators stand in negative territory, whilst the 20 SMA turned sharply lower above the current price.
"In the 4 hours chart, the technical picture is neutral-to-bearish as the technical indicators head slightly lower below their mid-lines whilst the 20 SMA is for the most flat around 0.7300. In the 4 hours chart, the technical picture is neutral-to-bearish as the technical indicators head slightly lower below their mid-lines whilst the 20 SMA is for the most flat around 0.7300."