31 Jul 2013
AUD/USD extends its descent, around 0.9030
FXstreet.com (Barcelona) -The bearishness around the Aussie dollar is not giving up on Wednesday despite better results from the private sector credit in Australia, dragging the AUD/USD to the 0.9030 region so far.
AUD/USD further pullbacks expected
The recent dovish comments by RBA Governor G.Stevens prompted investors to start pricing in another rate cut by the RBA in its next meeting. Today’s FOMC event would prove critical for the pair via the greenback, and might add extra selling pressure to the pair. According to NAB analysts, “We now also expect an additional 25bps cut to 2.25% before year end – most likely in November after the Q3 CPI although it could be earlier. Beyond this, we expect the Australian economy will continue to grow below trend, income growth to be weak, and the unemployment rate to rise to and possibly above 6¼%. So the RBA will retain a bias to ease well into 2014 and a cash rate below 2¼% remains a real possibility”.
AUD/USD key levels
As of writing the pair is down 0.44% at 0.9024 with the next support at 0.9171 (MA21d) followed by 0.9044 (low Jul.30) and finally 0.9036 (low Jul.15). On the flip side, a break above 0.9205 (MA10d) would open the door to 0.9206 (high Jul.30) and then 0.9227 (low Jul.26).
AUD/USD further pullbacks expected
The recent dovish comments by RBA Governor G.Stevens prompted investors to start pricing in another rate cut by the RBA in its next meeting. Today’s FOMC event would prove critical for the pair via the greenback, and might add extra selling pressure to the pair. According to NAB analysts, “We now also expect an additional 25bps cut to 2.25% before year end – most likely in November after the Q3 CPI although it could be earlier. Beyond this, we expect the Australian economy will continue to grow below trend, income growth to be weak, and the unemployment rate to rise to and possibly above 6¼%. So the RBA will retain a bias to ease well into 2014 and a cash rate below 2¼% remains a real possibility”.
AUD/USD key levels
As of writing the pair is down 0.44% at 0.9024 with the next support at 0.9171 (MA21d) followed by 0.9044 (low Jul.30) and finally 0.9036 (low Jul.15). On the flip side, a break above 0.9205 (MA10d) would open the door to 0.9206 (high Jul.30) and then 0.9227 (low Jul.26).