6 May 2014
AUD/USD: Wouldn’t surprise if the pair break higher today - Arab Bank
FXStreet (Bali) - David Scutt, Treasury Dealer at Arab Bank, believes that there are some good chances that the AUD/USD may break higher today, on a combination of upbeat trade data, neutral RBA and the usual positive flows for the Australian Dollar during the Asian session.
Key Quotes
"A quiet session for the AUDUSD overnight with the pair operating in a thin band between .9257-80 throughout. While that was overnight, the volatility will likely return today with the release of trade data at 1.30 GMT, along with the RBA policy statement at 4.30 GMT, set to dictate short-term direction."
"Given the trade data has been relatively-strong in recent months, the diminished likelihood jawboning from the RBA and Asia’s propensity to ‘buy the dip’ of late, it wouldn’t surprise if the pair break higher today, particularly if the trade data does impress earlier in the session. Support is located at .9257, .9247 and .9220 with resistance layered between .9280-90 and again at .9317. "
"The RBA will announce their May monetary policy decision at 2.30pm this afternoon. We expect rates will remain at 0.50%, a neutral bias and very little change to the wording of the accompanying policy statement. If the Board are to tweak the wording, it’ll likely be centred around the recent fall in domestic consumer confidence."
Key Quotes
"A quiet session for the AUDUSD overnight with the pair operating in a thin band between .9257-80 throughout. While that was overnight, the volatility will likely return today with the release of trade data at 1.30 GMT, along with the RBA policy statement at 4.30 GMT, set to dictate short-term direction."
"Given the trade data has been relatively-strong in recent months, the diminished likelihood jawboning from the RBA and Asia’s propensity to ‘buy the dip’ of late, it wouldn’t surprise if the pair break higher today, particularly if the trade data does impress earlier in the session. Support is located at .9257, .9247 and .9220 with resistance layered between .9280-90 and again at .9317. "
"The RBA will announce their May monetary policy decision at 2.30pm this afternoon. We expect rates will remain at 0.50%, a neutral bias and very little change to the wording of the accompanying policy statement. If the Board are to tweak the wording, it’ll likely be centred around the recent fall in domestic consumer confidence."