Market News & Analysis
AUD setting up for new move lower to USD and Yen?
The AUD currently sits in a bearish position, data has not been helping the AUD of late with CPI coming in last week way below expectations. Eyes have moved the RBA not for if they’ll cut rates but when. Westpac advised yesterday they still see August as the most likely month the RBA may cut. The fortunes of the AUD will largely remain in the hands of the RBA, a cut and talk of further cuts will set the path firmly lower.
Let’s take a look at the AUDUSD and AUDJPY daily charts;
Overall the AUDUSD broke its longer-term downtrend but has not yet been able to really get new long momentum going. For now, price remains in a descending triangle consolidation with sellers breaking the minor trend. What we’re watching is the current counter-rally, if sellers are able to get back into control it would seem that we have a new downtrend in motion and we could see a move back to test .70 – .6980.
AUDJPY price remains range-bound on the medium term, but sellers have broken two uptrends. Like with the A/$ above we’re watching to see if the current counter rally fails and sellers maintain current momentum. If so, we would be looking for a move lower to test support at 77.65.
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