Tuesday, 21 November 2017

AUD/USD tumbled on dovish RBA


In the early Asian session Aussie fell to 0.7530, a level that has not been visited since late June. The mover for this sharp drop is the dovish RBA minutes, as the central bankers are concerned about the job market outlook and slow growth in wages and there for will keep neutral stance for the foreseeable future.
AUD/USD rebounded from the five month low during the Europe trade and the current market price is 0.7575. The recovery was supported by
RBA Governor Phillip Lowe's remarks that next move in rates would most likely be up rather than down, which fuelled the Australian Dollar bulls.
On the four hour time frame the price is below its bearish 100-day and 200-day SMAs and few pips above the 20-day SMA, also bearish. Stochastic is showing strong upward momentum and is slightly above its mid-line, while RSI is located at the mid and has lost directional strength.
The pair remains well supported by the key level at 0.7500, but if breaking it, doors are opened for testing early May’s low at 0.7330. Looking to the upside, 0.7585 is first bulls target and in case of conquering it, the pair would be seen beyond 0.7600.


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