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3 Mar 2014
AUD/USD awaits RBA, tipped dovish
FXStreet (Guatemala) - AUD/USD has been attempting the upside on a slow start to the week, piercing the 0.8939 resistance without a great deal of conviction.
RBS analysts explained that the RBA decision is due and the most likely outcome in their view is a largely unchanged statement relative to February, when the Bank shifted to a more neutral stance on monetary policy. “The risks likely lie toward a more dovish statement after business investment data showed weak investment into the non-resources sector. To be sure, the February statement does acknowledge that "near-term prospects for business investment remain subdued." Any change to reinforce or highlight this point would likely be a negative for the AUD. While the AUD has risen since the February statement, we do not believe the RBA will revert to calling the currency "uncomfortably high" in the March statement. While the RBA decision is the major event for the AUD, other data releases of note include the fourth quarter current account balance and January building approvals figures”.
AUD/USD Levels
The 20 DMA is 0.8974, the 50 DMA is 0.8911 and the 200 DMA is 0.9183. RSI (14) reads 52.74. Supports are 0.8730, 0.8770, 0.8821, 0.8873. Spot is 0.8928 while resistances are 0.8939, 0.8975,0.8990 and 0.9026.
RBS analysts explained that the RBA decision is due and the most likely outcome in their view is a largely unchanged statement relative to February, when the Bank shifted to a more neutral stance on monetary policy. “The risks likely lie toward a more dovish statement after business investment data showed weak investment into the non-resources sector. To be sure, the February statement does acknowledge that "near-term prospects for business investment remain subdued." Any change to reinforce or highlight this point would likely be a negative for the AUD. While the AUD has risen since the February statement, we do not believe the RBA will revert to calling the currency "uncomfortably high" in the March statement. While the RBA decision is the major event for the AUD, other data releases of note include the fourth quarter current account balance and January building approvals figures”.
AUD/USD Levels
The 20 DMA is 0.8974, the 50 DMA is 0.8911 and the 200 DMA is 0.9183. RSI (14) reads 52.74. Supports are 0.8730, 0.8770, 0.8821, 0.8873. Spot is 0.8928 while resistances are 0.8939, 0.8975,0.8990 and 0.9026.