FXStreet (Guatemala) – AUD/USD is currently trading at 0.7628 with a high of 0.7638 and a low of 0.7606.
AUD/USD is trading nervously ahead of key data events this week and has moved in to consolidation, with support coming in on some lose footing from the Aussie while changing hands at the bottom of the descending and steep trend line. While we await the RBA, which is expected to maintain the policy rate at 2.00%, it is going to be the tone of the bank that will be of most interest in respect to the recent disappointments in the Capex, for one and on going deflationary pressures.
The Capex data arrived last week as just -4.4% for Q1 vs – 2.2% in Q4 last year, while the second estimate for 2015/16 was A$104.0 bln vs earlier higher estimates of A$109.8 bln, which were some way out considering the value of the Aussie and lower borrowing costs. Meanwhile, we just had the release of Australia current account balance that came above expectations at -10.7B in Q1 vs -10.8B expected.
Technically, we are moving towards the downside target at 0.7535, April lows. Meanwhile, Karen Jones, chief analyst at Commerzbank explained that beyond here lies the base of the 2 year down channel at 0.7390. “Note TD perfected set ups are tom de mark signals suggesting the loss of downside momentum.”
(Market News Provided by FXstreet)