Tuesday, 5 December 2017

AUD/USD Pops up and drops down


Aussie pinned a new fresh three weeks high at 0.7653 in the early Asian session. Fantastic macro data came from Australia, having retail sales up with 0.5% from previous upwardly revised 0.1%, the Q3 current account balance posted a deficit of 9.1B, improved from previous -9.7B and alongside backed up by Caixin Services PMI printing better than expected figures.Meanwhile RBA decided to keep rates unchanged on its monthly monetary policy meeting.
But the bulls enthusiasm was short-lived as gold plummeted to two months low and added pressure on the Aussie. The AUD/USD pair dropped to 0.76 area and currently is trading at 0.7604. 
On the four hour time frame th 20-day SMA eased and from bullish has turned flat, while the 100-day and 200-da SMAs are keeping bearish slopes. Stochastic retreated from extreme oversold area and currently is showing strong bearish momentum, crossing its mid-line. RSI is located around mids and has lost directional strength. 
As seen on the same chart, the price is caught between its bearish SMAs and there is a risk to the downside. If crossing to below 0.7575 (last week’s low), the pair will be poised to extend its decline towards next support at 0.7530 (November’s low). 
Tomorrow are due numbers on Q3 GDP in Australia, with growth seen at 0.7% from previous 0.8% and this makes the pair vulnerable and gives another hesitation for Australian bulls.


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