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19 Jun 2013
AUD/USD break of 0.9500 reveals further downside potential
FXstreet.com (Barcelona) - The AUD/USD suffered its third day of declines in a row, losing another 53 pips to close at 0.9484.
RBA minutes provide scope for further easing
Jacqui Douglas, Senior Global Strategist at TDS Securities went on to share some thoughts on the details of the latest RBA Minutes which were released in yesterday’s session. “The minutes of the RBA’s June Board meeting, when it left the cash rate unchanged at 2.75% (in line with expectations), provided few clues on the outlook for near term policy.”
In further discussing her views, Douglas went on to comment, “There were many word-for-word reproduction of the key statements from the June post-meeting communique, including: (1) the stance of policy was appropriate for the time being, (2) the outlook for inflation provided some scope for further easing, should that be required, and finally, (3) the AUD had depreciated noticeably but remained at a high level considering the decline in export prices.” In conclusion, Douglas mentioned there is no doubt the RBA maintains an easing bias but the lack of details in the release makes it difficult to determine what the time line for further action might be going forward.
AUD/USD technical set up still provides bearish tilt
The FXstreet.com trend index remains in slightly bearish set up on the daily chart, while the ob/os index reads oversold. Price is also back below both the downward sloping 9 and 20 dma’s which is another sign the bears may have the upper hand as we progress throughout the week. On a final note, the RSI (14) has still been able to build any value above the 45 level which is a sign momentum sellers remain in control. Initial resistance now sits at 0.9522 (the 9dma), while first support is at 0.9439 (previous day low)
RBA minutes provide scope for further easing
Jacqui Douglas, Senior Global Strategist at TDS Securities went on to share some thoughts on the details of the latest RBA Minutes which were released in yesterday’s session. “The minutes of the RBA’s June Board meeting, when it left the cash rate unchanged at 2.75% (in line with expectations), provided few clues on the outlook for near term policy.”
In further discussing her views, Douglas went on to comment, “There were many word-for-word reproduction of the key statements from the June post-meeting communique, including: (1) the stance of policy was appropriate for the time being, (2) the outlook for inflation provided some scope for further easing, should that be required, and finally, (3) the AUD had depreciated noticeably but remained at a high level considering the decline in export prices.” In conclusion, Douglas mentioned there is no doubt the RBA maintains an easing bias but the lack of details in the release makes it difficult to determine what the time line for further action might be going forward.
AUD/USD technical set up still provides bearish tilt
The FXstreet.com trend index remains in slightly bearish set up on the daily chart, while the ob/os index reads oversold. Price is also back below both the downward sloping 9 and 20 dma’s which is another sign the bears may have the upper hand as we progress throughout the week. On a final note, the RSI (14) has still been able to build any value above the 45 level which is a sign momentum sellers remain in control. Initial resistance now sits at 0.9522 (the 9dma), while first support is at 0.9439 (previous day low)