2 Jun 2014
AUD/USD marginally above 0.93 ahead of RBA
FXStreet (Bali) - AUD/USD opened steady just above 0.93 round number, with an upbeat Chinese official PMI over the weekend a positive input for the interest of the Aussie traders ahead of the RBA.
On the heels of last week's capex details, which painted a brighter outlook for the Australian economy, the smart money was quick to pile in on longs off the 0.92 periphery last week, but upon faced with key resistance at 0.9325/30, heavt selling interest coupled with profit taking was observed ahead of Tuesday's RBA monetary policy decision, in which the market expects the central bank to reiterate its firm neutral stance for the time being.
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The pair is losing the strength seen late past week, as the hourly chart shows price below a flat 20 SMA and indicators also horizontal around their midlines, anticipating no clear direction in the short term."
Bednatik adds: "In the 4h chart however, technical readings maintain a positive tone, as per 20 SMA presenting a clear bullish slope in the 0.9270 area and indicators heading higher above their midlines. As long as below the level, the risk to the downside remains limited with further advances above 0.9340 required to confirm a new leg up."
On the heels of last week's capex details, which painted a brighter outlook for the Australian economy, the smart money was quick to pile in on longs off the 0.92 periphery last week, but upon faced with key resistance at 0.9325/30, heavt selling interest coupled with profit taking was observed ahead of Tuesday's RBA monetary policy decision, in which the market expects the central bank to reiterate its firm neutral stance for the time being.
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The pair is losing the strength seen late past week, as the hourly chart shows price below a flat 20 SMA and indicators also horizontal around their midlines, anticipating no clear direction in the short term."
Bednatik adds: "In the 4h chart however, technical readings maintain a positive tone, as per 20 SMA presenting a clear bullish slope in the 0.9270 area and indicators heading higher above their midlines. As long as below the level, the risk to the downside remains limited with further advances above 0.9340 required to confirm a new leg up."