7 Apr 2015
AUD/USD under pressure ahead of RBA
FXStreet (Bali) - AUD/USD is trading under pressure in early Tokyo, currently at 0.7580 lows, ahead of the Australian retail sales at 1.30 GMT and the RBA decision at 4.30 GMT, with the market divided on the potential monetary policy outcome.
Key Quotes - Valeria Bednarik, Chief Analyst at FXStreet
"The Australian Central Bank is largely expected to cut rates today from the current 2.25% level, as the economic jitters in the country have been exacerbated by metal's weakness. The release is expected to generate strong volatility in Aussie crosses, albeit if the Bank actually cuts rates, the decline may be limited, considering investors have been pricing it in for over a month already."
"If the bank stands on hold however, the pair may bounce up to the 0.7690 price zone, the 38.2% retracement of its latest decline. In the short term, the 1 hour chart continues to favor the downside, as the price develops below its 20 SMA, whilst the technical indicators head lower below their mid-lines."
"In the 4 hours chart the price is back below a flat 20 SMA, while the technical indicators have turned lower, but remain above their mid-lines at the time being, with the immediate short term support now at 0.7565."
Key Quotes - Valeria Bednarik, Chief Analyst at FXStreet
"The Australian Central Bank is largely expected to cut rates today from the current 2.25% level, as the economic jitters in the country have been exacerbated by metal's weakness. The release is expected to generate strong volatility in Aussie crosses, albeit if the Bank actually cuts rates, the decline may be limited, considering investors have been pricing it in for over a month already."
"If the bank stands on hold however, the pair may bounce up to the 0.7690 price zone, the 38.2% retracement of its latest decline. In the short term, the 1 hour chart continues to favor the downside, as the price develops below its 20 SMA, whilst the technical indicators head lower below their mid-lines."
"In the 4 hours chart the price is back below a flat 20 SMA, while the technical indicators have turned lower, but remain above their mid-lines at the time being, with the immediate short term support now at 0.7565."