AUD/USD: big risk events coming up

AUD/USD is currently trading to the downside, sliding from off the 0.72 handle late last week on the GDP and has been unable to recover and trade below the hourly 10 sma at 0.7152.

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Major risk events for AUD/USD

There is little to work from today specifically for the Aussie, but the week ahead will be major with a number of major events in the GDP , RBA, Chinese PMIs and finally the nonfarm payrolls to top it all off.

“In Australia, the RBA is scheduled to meet on its cash rate target. We believe developments over the past few months will have shifted a reluctant RBA further toward easing, and expect its statement to read more dovish on balance (we forecast a 25bp rate cut in May, with the market currently pricing 20bp at that meeting). While AUD/USD has strengthened in recent weeks because of an increase in iron ore prices, rate differentials turning more in favor of AUD, financial inflows and positioning, we believe the increase in iron ore prices could prove unsustainable and susceptible to correction, ” explained analysts at Nomura in this week’s G10 article.

AUD/USD levels

“In Australia, the RBA is scheduled to meet on its cash rate target. We believe developments over the past few months will have shifted a reluctant RBA further toward easing, and expect its statement to read more dovish on balance (we forecast a 25bp rate cut in May, with the market currently pricing 20bp at that meeting). While AUDUSD has strengthened in recent weeks because of an increase in iron ore prices, rate differentials turning more in favor of AUD, financial inflows and positioning, we believe the increase in iron ore prices could prove unsustainable and susceptible to correction,” explained Valeria Bednarik, chief analyst at FXStreet.

AUD/USD is currently trading to the downside, sliding from off the 0.72 handle late last week on the GDP and has been unable to recover and trade below the hourly 10 sma at 0.7152.

(Market News Provided by FXstreet)