FXStreet (Guatemala) – Analysts at Scotiabank explained that AUD technicals hint to the risk of decline as we note the rejection of 100 day MA (0.7353) resistance, with momentum fading further from its recent overbought levels (the RSI peaked just above 70 on Monday, October 12).
Key Quotes:
“The RBA’s Financial Stability Review has provided for a softening in the tone of concern with regards to housing market risks, a development that removes a previous impediment to further easing. OIS are now pricing in one full 25bpt rate cut over the next 12 months and 20% chance of a second cut. 9 of 29 Bloomberg forecast contributors expect a 25bpt rate cut at the next RBA meeting on November 3rd.”
(Market News Provided by FXstreet)