16 Jul 2013
RBA minutes next: Impact on the AUD/USD
FXstreet.com (Barcelona) - The <a href="http://www.fxstreet.com/economic-calendar/event.aspx?id=b6476b88-c252-4746-b38d-295fcaf53ac0">July RBA meeting is due out at 1.30GMT - less than 1 hour - and markets are expectant to obtain further clues on how close the central bank is from cutting the benchmark interest rate again, as the easing cycle continues.
RBA, changes in dovish view?
NAB notes: "The June post-meeting statement affirmed that the central bank retains an easing bias, and also expressed the expectations/hope that the exchange rate had further to fall in the context of the falling terms of trade.
According to Sean Lee, Founder at FXWW: "If we remember after the last meeting, Mr Stevens made a ‘joke’ the next day about how long and hard they had deliberated on their decision. The joke might have been appreciated by the audience which was present but when reported in cold printing presses it caused quite a stir in the market and sent the AUD/USD tumbling from .9220 to .9035. Today’s minutes should show if there really is any change in their thought processes."
AUD/USD short term technical outlook
The AUD/USD technical outlook is bullish intraday, with a boost given just ahead of the minutes after stops above 0.9125 were tripped. According to John Noonan, Head of IFR Markets, "sellers are eyed ahead of 0.9150 with a few stops above that level", with further resistance noted at "61.8 of 0.9306/0.8998 move at 0.9190" Noonan said. On the downside, 0.9100/10 - late U.S. session highs - should see dip buying participation increase.
RBA, changes in dovish view?
NAB notes: "The June post-meeting statement affirmed that the central bank retains an easing bias, and also expressed the expectations/hope that the exchange rate had further to fall in the context of the falling terms of trade.
According to Sean Lee, Founder at FXWW: "If we remember after the last meeting, Mr Stevens made a ‘joke’ the next day about how long and hard they had deliberated on their decision. The joke might have been appreciated by the audience which was present but when reported in cold printing presses it caused quite a stir in the market and sent the AUD/USD tumbling from .9220 to .9035. Today’s minutes should show if there really is any change in their thought processes."
AUD/USD short term technical outlook
The AUD/USD technical outlook is bullish intraday, with a boost given just ahead of the minutes after stops above 0.9125 were tripped. According to John Noonan, Head of IFR Markets, "sellers are eyed ahead of 0.9150 with a few stops above that level", with further resistance noted at "61.8 of 0.9306/0.8998 move at 0.9190" Noonan said. On the downside, 0.9100/10 - late U.S. session highs - should see dip buying participation increase.