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4 May 2015
AUD/USD: Steady ahead of the RBA interest rate decision
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7835 with a high of 0.7853 and a low of 0.7801.
AUD/USD is sidelined at the moment while investors and treasurers hold off as we move towards a data dependant market with the Fed relying on improvements in their economy before making the decision to act and analysts sit on the fence in respect of the forthcoming RBA meeting and interest rate decision this evening in Asia. Will they cut 25bps? We also have Fedspeak this week and a number of releases form the US market, including the big one at the end of the week, Nonfarm Payrolls. This will be key each month from now on as a gauge towards timings of a Fed rate hike.
Technically, the major is making a minor recovery vs the strong downside from 0.8074 the April highs. The ascending support line was broken and while below there at 0.7955, the major remains offered with 0.76 a psychological target ahead of the RBA's preferred levels and early april lows of 0.7531. However, Karen Jones, chief analyst at Commerzbank sights a bullish scenario in the Elliott wave counts while support comes at 0.7787. " Failure here will trigger a slide to the 55 day ma at 0.7752 and the market will need to close below here to signal the resumption of the down move. Currently the Elliott wave counts are implying that the market will stabilise down here and reattempt the topside."
AUD/USD is sidelined at the moment while investors and treasurers hold off as we move towards a data dependant market with the Fed relying on improvements in their economy before making the decision to act and analysts sit on the fence in respect of the forthcoming RBA meeting and interest rate decision this evening in Asia. Will they cut 25bps? We also have Fedspeak this week and a number of releases form the US market, including the big one at the end of the week, Nonfarm Payrolls. This will be key each month from now on as a gauge towards timings of a Fed rate hike.
Technically, the major is making a minor recovery vs the strong downside from 0.8074 the April highs. The ascending support line was broken and while below there at 0.7955, the major remains offered with 0.76 a psychological target ahead of the RBA's preferred levels and early april lows of 0.7531. However, Karen Jones, chief analyst at Commerzbank sights a bullish scenario in the Elliott wave counts while support comes at 0.7787. " Failure here will trigger a slide to the 55 day ma at 0.7752 and the market will need to close below here to signal the resumption of the down move. Currently the Elliott wave counts are implying that the market will stabilise down here and reattempt the topside."