FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet noted that the Aussie fell below the 0.7200 level against its American rival by the end of the day, weighed by the sharp decline in commodities prices, and dollar’s demand.
Key Quotes:
“Early Wednesday, Australia will release its third quarter inflation figures, with the main reading expected at 0.6% from the previous 0.7%. Also, the RBA will release its annual report, all of which will offer a clearer picture of the economic situation of the country, and therefore lead the currency’s moves.”
“Technically, the downside is favored as in the 1 hour chart, the price is well below a strongly bearish 20 SMA whilst the technical indicators head lower, approaching oversold levels.”
“In the 4 hours chart, the price extended below its 20 SMA that anyway lacks directional strength, whilst the Momentum indicator holds flat below the 100 level and the RSI heads lower around 38, increasing the downward risk for the upcoming hours.”
(Market News Provided by FXstreet)