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5 Aug 2013
AUD/USD bounces from 0.8850
FXstreet.com (Edinburgh) -Softer than expected retail sales in Australia during June added to the bearish sentiment surrounding the Aussie dollar, dragging the AUD/USD to fresh lows around 0.8850 just to rebound later to the vicinity of 0.8890.
AUD/USD focus on the RBA
The RBA meets tomorrow amidst a generalized tone in favour of another 25bps cut of the refi rate, taking it to 2.5% and matching New Zealand’s. Strategists Geoffrey Yu and Gareth Berry at UBS suggested, “Another 25 bp cut from the RBA on Tuesday is almost universally expected. It’s nearly fully priced in though, so what additional currency weakness could flow from this decision next week?”. The experts argued that the AUD would suffer the central bank’s easing bias and the prospects of further cuts along with the increasing concern regarding the economic rebalancing after the mining boom.
AUD/USD levels to watch
As of writing the pair is losing 0.26% at 0.8896 with the immediate support at 0.8860 (low Aug.31 2010) and then 0.8846 (low Aug.27 2010). On the upside, a break above 0.8994 (high Aug.1) would bring 0.9047 (high Jul.31) and then 0.9100 (high Jul.30).
AUD/USD focus on the RBA
The RBA meets tomorrow amidst a generalized tone in favour of another 25bps cut of the refi rate, taking it to 2.5% and matching New Zealand’s. Strategists Geoffrey Yu and Gareth Berry at UBS suggested, “Another 25 bp cut from the RBA on Tuesday is almost universally expected. It’s nearly fully priced in though, so what additional currency weakness could flow from this decision next week?”. The experts argued that the AUD would suffer the central bank’s easing bias and the prospects of further cuts along with the increasing concern regarding the economic rebalancing after the mining boom.
AUD/USD levels to watch
As of writing the pair is losing 0.26% at 0.8896 with the immediate support at 0.8860 (low Aug.31 2010) and then 0.8846 (low Aug.27 2010). On the upside, a break above 0.8994 (high Aug.1) would bring 0.9047 (high Jul.31) and then 0.9100 (high Jul.30).