FXStreet (Guatemala) – AUD/USD is currently trading at 0.7481 with a high of 0.7502 and a low of 0.7479.
AUD/USD is moving back on the offer as we progress through early Asia ahead of the Tokyo open and RBA interest rate decision tonight.
AUD/USD price action
AUD/USD has been a bumpy ride at the start of the European week following the opening bearish gap on the back of the Greek referendum NO vote. 0.7512 was Friday’s US close on 4th July holidays and the gap opened at 0.7477, the lowest level in six years before scoring new lows at 0.7461. However, 0.7511 was scored on the rebuttal and we have been volatile between aforementioned lows and 0.7530 since. supply was summoned at this juncture in the US and below sighted sell orders at 0.7540/50.
AUD/USD fundamentals
With a downside bias, AUD/USD is pressured on the back of the Greek referendum and continued uncertainties as investors seek out safer havens. It is still early days and this may drag on for some time, which means scope for further volatility ahead despite the fairly subdued start in European and US markets. Also, commodities continue to weigh on the Aussie, burgeoning the concerns over China’s economic outlook.
We had some data with the AiG Performance of Construction Index (Jun) arriving at 46.4 vs 47.8 previous, but the main focus remains with the RBA interest rate decision and statement. Markets are ready to hear further jawboning on the exchange rate and expect that the Central Bank will hold rates for a further term although come across dovish.
AUD/USD technically
Karen Jones, chief analyst at FXStreet noted that the break below 0.7534 has already reached the bottom of the 2015 channel at 0.7425 and beyond a small bounce targets the base of the 2 year channel at 0.7193 longer term. Near term the market remains offered below the 0.7700 short term resistance line.
Immediate resistances are seen at 0.7536/50 (Jul 3 closing price/orders), 0.7585 (Jun 29 low) and 0.7650 (10-day SMA). On the other hand, supports could be found at 0.7462 (6-year low Jul 6), 0.7449 (May 18 2009 low) and 0.7400 (psychological level).
(Market News Provided by FXstreet)