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28 Aug 2013
AUD/USD continues to fail at 0.8920/30, weaker rejections
FXstreet.com (Barcelona) - AUD/USD was supported by bids at 0.8920/30 following a third test off the level since recovering from its bear trend lows last Aug 2nd, with the pair developing a consolidation pattern now.
Risk is still to the downside on the Aussie
Neither technicals nor fundametals are providing much support to the Australian Dollar. While the latest chatter of an imminent US-led intervention in Syria saw risk-off sentiment dominate, the pair proved quite resilient to let 0.8920/30 go. On a more technical note though, one should notice that the angle of each rejection off critical 0.8930/30 is getting more acute, a communication that buyers are finding it harder to lift the price off protected support level.
On the way up, next resistance is seen at 0.90 where buy stops from short-term traders have been reported. If recovery above this first hurdle is achieved, next resistance at 0.9050 may come into focus where larger stops at 0.9060 are clustered.
RBA set to keep rates next week
The next big risk event for the Australian Dollar will be on Sept 3, where the RBA meets again to decide on interest rates. The swap rates market is pricing a mere 6% for a cut this time, a line of thinking shared by most commentators, including RBA watcher Terry McCrann, who said on Tuesday the central bank won’t cut next week.
According to McCrann: "Rate cuts might help borrowers, but they are beginning to seriously hurt savers. And there’s the risk of reigniting a borrowing and property-buying binge. More broadly, the RBA sees a clearly improving global outlook, hopefully riding us over the end of the resources investment boom."
Risk is still to the downside on the Aussie
Neither technicals nor fundametals are providing much support to the Australian Dollar. While the latest chatter of an imminent US-led intervention in Syria saw risk-off sentiment dominate, the pair proved quite resilient to let 0.8920/30 go. On a more technical note though, one should notice that the angle of each rejection off critical 0.8930/30 is getting more acute, a communication that buyers are finding it harder to lift the price off protected support level.
On the way up, next resistance is seen at 0.90 where buy stops from short-term traders have been reported. If recovery above this first hurdle is achieved, next resistance at 0.9050 may come into focus where larger stops at 0.9060 are clustered.
RBA set to keep rates next week
The next big risk event for the Australian Dollar will be on Sept 3, where the RBA meets again to decide on interest rates. The swap rates market is pricing a mere 6% for a cut this time, a line of thinking shared by most commentators, including RBA watcher Terry McCrann, who said on Tuesday the central bank won’t cut next week.
According to McCrann: "Rate cuts might help borrowers, but they are beginning to seriously hurt savers. And there’s the risk of reigniting a borrowing and property-buying binge. More broadly, the RBA sees a clearly improving global outlook, hopefully riding us over the end of the resources investment boom."