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1 Jun 2015
AUD/USD ahead of RBA: Tom Demark signals show loss momentum
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7604 with a high of 0.7668 and a low of 0.7598.
AUD/USD had been subject to a bout of key data ahead of the RBA decision. Of late, we have had the strength in the US dollar, risk aversion and poor data in Australia . The Capex data arrived recently as -4.4% for Q1 vs - 2.2% in Q4 last year, while most important was the second estimate for 2015/16 where Capex was A$104.0 bln vs earlier higher estimates of A$109.8 bln. While the RBA is expected to maintain the policy rate at 2.00%, the tone will be key and some analysts are looking for a reintroduction of an easing bias based up the Capex.
Meanwhile, we had some better news overnight from Asia in China’s National Bureau of Statistics who reported its manufacturing PMI for the month of May which was representing the fastest pace of expansion since November last year. From the US, the pair extended the decline on the back of the ISM manufacturing index for May in at 52.8 versus 51.5 in May.
Technically, we are moving towards the downside target at 0.7535, April lows. Meanwhile, Karen Jones, chief analyst at Commerzbank explained that beyond here lies the base of the 2 year down channel at 0.7390. "Note TD perfected set ups are tom de mark signals suggesting the loss of downside momentum."
AUD/USD had been subject to a bout of key data ahead of the RBA decision. Of late, we have had the strength in the US dollar, risk aversion and poor data in Australia . The Capex data arrived recently as -4.4% for Q1 vs - 2.2% in Q4 last year, while most important was the second estimate for 2015/16 where Capex was A$104.0 bln vs earlier higher estimates of A$109.8 bln. While the RBA is expected to maintain the policy rate at 2.00%, the tone will be key and some analysts are looking for a reintroduction of an easing bias based up the Capex.
Meanwhile, we had some better news overnight from Asia in China’s National Bureau of Statistics who reported its manufacturing PMI for the month of May which was representing the fastest pace of expansion since November last year. From the US, the pair extended the decline on the back of the ISM manufacturing index for May in at 52.8 versus 51.5 in May.
Technically, we are moving towards the downside target at 0.7535, April lows. Meanwhile, Karen Jones, chief analyst at Commerzbank explained that beyond here lies the base of the 2 year down channel at 0.7390. "Note TD perfected set ups are tom de mark signals suggesting the loss of downside momentum."