The Australian dollar managed finally to take advantage from weak US dollar performance after disappointing NFP data pushing AUD/USD with +0.74-pips with 0.7446 high for Friday’s ending sessions.
Today, the pair bullish momentum took a lifting hand first by local Australian Company Operating Profits q/q at 6.00 % with forecasts placed at 5.1%, but the main booster was upbeat Chinese Caixin Services PMI at 52.8% booking 51.5% on previous sessions. As a result the pair added +65-pips for Monday sessions with 0.7486 high.
Currently the pair is trading 0.7475, slightly below its daily 50-EMA and if market closed above 0.7481 (50-EMA). The next test for AUD/USD will be 0.7500, daily 200-EMA and in case the pair closed above it, the upside prevails and market to consider the cable officially bullish.
This all comes before RBA stance on Interest Rate decision with expectations highly expected to leave rates at current 1.500% point basis, which could create a hostile wave pushing the pair downward, which leaves the pair’s destination within Lowe’s hands as the Gov. gives a speech on behalf of RBA where traders should look for either hawkish or dovish tilts regarding Australian economic coming outlook.
Fundamentals:
1- AUD – RBA Interest Rates Decision tomorrow at 4:30 AM GMT.
2- AUD – RBA Statement tomorrow at 4:40 AM GMT.
Technical overview:
Trend: Sideways
Resistance levels: R1 0.7510, R2 0.7589, R3 0.7671
Support levels: S1 0.7443, S2 0.7383, S3 0.7329
Remark: The market is currently Sideways with more bullish attacks taking into consideration current weak U.S Dollar and recent rallies for AUD/USD since Friday. Only closing above 0.7500 200-EMA is an official confirmation the pair is bullish with further attacks seeing R2 level. Expect some retreats on first announcement of unchanged RBA rates but dips should fight S1 level. Later on RBA statement will the pair’s trading destination.
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