AUD Trading Outlook
The Australian dollar (AUD) dropped - for a fourth consecutive day - to 1.0263 from 1.0304 against the US dollar, in anticipation of the monetary policy statement by the Reserve Bank of Australia (RBA) earlier today. In its statement, the nation’s central bank cut growth and inflation forecasts citing weak job and housing markets.
Australian Dollar (AUD) the AUD/USD tracked stock markets lower yesterday with the risk off trading pressuring the downside. Support under 1.0300 was quickly found but the bounce was limited. The RBA rate cut has had little continued effect on the AUD/USD with the market now looking to stock markets for direction. Looking ahead, no data from the Asia Pacific.
Australian Dollar (AUD) the AUD/USD was sharply lower in Asia after the RBA cut rates by 0.5% vs. 0.25% expected to 3.75%. The AUD/USD found support at 1.0300 and was able to rally to 1.0350 later in the day. UPDATE CHINA HSBC PMI at 49.3 vs. 49.1 slightly previously.
Australian Dollar (AUD) the AUD/USD pulled back overnight as the coming RBA risk event prompted the buyers in recent days to take profit in case the central bank cuts rates more than expected today. The RBA statement will also be digested for clues on the future policy action and issues on the RBA’s mind. Looking ahead, RBA forecast to cut rates to 4.0% vs. 4.25% previously. UPDATE CHINA PMI at 53.3 vs. 53.6 slightly less than expected.
Australian Dollar (AUD) the AUD/USD is defying the fundamental news and expected direction of a currency that is heading into an Interest Rate meeting where there is expected to be a rate cut. The RBA meeting tomorrow could see a 0.5% cut as calls from local exporters and retailers grow louder. Strong resistance is seen at 1.0500.
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