FXStreet (Guatemala) – AUD/USD is currently trading at 0.7241 with a high of 0.7242 and a low of 0.7185.
A quiet agenda scheduled ahead this week for the commodity currency, focus will remain on the commodity sector, risk appetite and will stay with the theme of divergence between the Fed and RBA.
The divergence between the two banks has come in little bit with the recent data in Australia improving and the RBA preferring to stay on hold with less speculation in the market that the RBA will cut interest rates. However, while Governor Glenn Stevens speaking about issues in economic policy at the Australian Business Economists Annual Dinner, in Sydney, sounded optimistic on Australia’s growth prospects and noted that the economic growth is expected to pick-up over next couple of years, he also stressed that Inflation is no barrier to further easing if needed.
The FOMC comes in December and while the market has priced in a rate hike, the market is also aware that rate hikes will be gradual and not aggressive, allowing the Aussie to drift higher. However, commodities, specifically weak coal and iron ore prices, will remain a source of pressure on the Aussie and could keep a lid on the current recovery attempts from the Nov lows at 0.7016 of the Oct and 0.7382 downtrend.
AUD/USD levels
Technically, analysts at UOB Group explained however, overbought short-term conditions could lead to a few days of consolidation first before a move towards our target at 0.7295 can be expected. “Stop-loss remains unchanged at 0.7105 for now.”
(Market News Provided by FXstreet)