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29 Jul 2015
AUD/USD: sellers ready? Creeping higher in early Asia
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7342 with a high of 0.7346 and a low of 0.7318.
AUD/USD keeps on the bid in early Asia and follows the overnight theme from lows below 0.7280 support on yesterday's business. Demand was found at 0.7260 level a couple of hours in to Tokyo yesterday and European and US markets stuck to the better bid theme on the back of rising metals on the LME, with Copper bouncing back of yearly lows, despite the downside pressures in the Chinese stock market and economy. Gold was also up from the weakest level since 2010. However, with sentiment for a Fed hike this year, investors are seeking yield, despite the global uncertainties that would otherwise support the price of the metal.
On the theme of the Fed, we are awaiting the FOMC tomorrow. Markets are expecting a neutral tone for the time being while bets are placed on a September hike. There is nothing to note for Australia today again and we await the building permits tomorrow. AUD/USD is running close to seller territory evident from 15th-23rd July support area.
AUD/USD technically bearish
Valeria Bednarik, chief analyst at FXStreet explained that the Australian rallied up from the 6-year low of 0.7256 and explained, "The 1 hour chart shows that the price stands well above a bullish 20 SMA, albeit the technical indicators diverge south, approaching their mid-lines and pointing for further short term retracements."
She added, "In the 4 hours chart, the price is above a bearish 20 SMA, whilst the technical indicators head north above their mid-lines, suggesting on contrary, some intraday advances. The background dominant trend is clearly bearish, which means investors will be waiting to sell on higher levels: approaches up to the 0.7400 level should then be understood as selling opportunities rather than a sign of further gains to come."
Rabobank FX Strategy Team notes that the AUD/USD should remain vulnerable, lowering the forecast towards 0.71 by year-end.
Karen Jones, chief analyst at Commerzbank explained that AUD/USD held steady yesterday and the recent low has been accompanied with a divergence of the daily RSI.
AUD/USD keeps on the bid in early Asia and follows the overnight theme from lows below 0.7280 support on yesterday's business. Demand was found at 0.7260 level a couple of hours in to Tokyo yesterday and European and US markets stuck to the better bid theme on the back of rising metals on the LME, with Copper bouncing back of yearly lows, despite the downside pressures in the Chinese stock market and economy. Gold was also up from the weakest level since 2010. However, with sentiment for a Fed hike this year, investors are seeking yield, despite the global uncertainties that would otherwise support the price of the metal.
On the theme of the Fed, we are awaiting the FOMC tomorrow. Markets are expecting a neutral tone for the time being while bets are placed on a September hike. There is nothing to note for Australia today again and we await the building permits tomorrow. AUD/USD is running close to seller territory evident from 15th-23rd July support area.
AUD/USD technically bearish
Valeria Bednarik, chief analyst at FXStreet explained that the Australian rallied up from the 6-year low of 0.7256 and explained, "The 1 hour chart shows that the price stands well above a bullish 20 SMA, albeit the technical indicators diverge south, approaching their mid-lines and pointing for further short term retracements."
She added, "In the 4 hours chart, the price is above a bearish 20 SMA, whilst the technical indicators head north above their mid-lines, suggesting on contrary, some intraday advances. The background dominant trend is clearly bearish, which means investors will be waiting to sell on higher levels: approaches up to the 0.7400 level should then be understood as selling opportunities rather than a sign of further gains to come."
Rabobank FX Strategy Team notes that the AUD/USD should remain vulnerable, lowering the forecast towards 0.71 by year-end.
Karen Jones, chief analyst at Commerzbank explained that AUD/USD held steady yesterday and the recent low has been accompanied with a divergence of the daily RSI.