FXStreet (Guatemala) – AUD/USD has has dropped back from the highs and momentum is picking up on the offer below the 200 hourly SMA.
AUD/USD’s 200 hourly SMA stands at 0.7027 and the pair was rejected at the 200 DMA forcing the unit on to the backfoot while Wall Street starts to turn negative a breaks the fashion of overnight bourses that were all opening and closing on the up in a bull market. Commodities have also slipped with oil trading back below the 200 SMA and dropping over $1.50bbl and Gold has dropped $8.00oz. Meanwhile we await the jobs data tonight as the big one for the Aussie this week ahead of the FOMC over the 16th and 17th of this month.
RBA in no rush
Overnight, RBA’s Deputy Governor Philip Lowe spoke at the CEDA conference in Melbourne. Analysts at TD Securities explained the details, “There was no hint from the speech that the RBA would entertain a rushed rate cut. He continued to deliver the RBA’s message that it is more or less comfortable with the levels of the AUD, again refraining from jawboning the currency lower, he downplayed concerns over China and the soft Q2 GDP read was brushed aside. Once again, Lowe reinforced the Bank’s view that monetary policy does have its limits, suggesting the RBA is reluctant to lower rates anytime soon. He did state that the missing ingredient in the Australian economy is investment that needed innovation and productivity, not just a low AUD and low rates.”
AUD/USD levels
Failures around this key resistance at the 200 SMA on the hourly chart may jeopardise further upside ahead of 0.7100 and below the key 0.7448 area, the July 21 high. To the downside, 0.6500 may have psychological importance. Looking back on the longer-term charts, there are very little technicals until 0.6000. 0.6850 guards 0.6774 June 2004 low then 0.6280 2009 March lows and also 0.6122/.6010, the 2008 lows.
(Market News Provided by FXstreet)