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19 Jun 2013
EUR/AUD edging higher towards 1.4200
FXstreet.com (Barcelona) - After finishing the previous day up 130 pips at 1.4118, the EUR/AUD is adding to gains during the Asia session up another 32 pips at 1.4150. The catalyst for the sharp gains appeared to be the release of the RBA minutes which seemed to help weaken the Aussie Dollar across the board.
RBA minutes keep Aussie on defensive
Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ shared some thoughts on the RBA minute release which seemed to help put the Aussie on the defensive across the majority of pairs. “The high yielding Australian dollar has come under further downward pressure overnight following the release of the latest RBA minutes from their meeting on the 4th June,” Hardman commented . In further discussing the release, Hardman went on to add, “The minutes revealed that the RBA gave an implicit green light to Australian dollar weakness observing that it had initially declined noticeably driven by Fed QE tapering expectations which had then been driven by domestic factors including RBA easing and heightened uncertainty regarding the China growth outlook.” In conclusion, Hardman noted the RBA mentioned further declines in the pair would help in re-balancing the economy overtime.
Path of least resistance remains higher
The FXstreet.com trend index remains in slightly bullish set up on the daily chart, while the ob/os index remains overbought. The RSI (14) also remains in bullish set up, consolidating above the 60 level and maintaining the bullish zone between 40 and 80. Short term moving averages are also bullish with price above both the 9 and 20dma’s. Initial resistance sits at 1.4237(high price from last week), while first support sits at 1.4017 (the 9dma).
RBA minutes keep Aussie on defensive
Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ shared some thoughts on the RBA minute release which seemed to help put the Aussie on the defensive across the majority of pairs. “The high yielding Australian dollar has come under further downward pressure overnight following the release of the latest RBA minutes from their meeting on the 4th June,” Hardman commented . In further discussing the release, Hardman went on to add, “The minutes revealed that the RBA gave an implicit green light to Australian dollar weakness observing that it had initially declined noticeably driven by Fed QE tapering expectations which had then been driven by domestic factors including RBA easing and heightened uncertainty regarding the China growth outlook.” In conclusion, Hardman noted the RBA mentioned further declines in the pair would help in re-balancing the economy overtime.
Path of least resistance remains higher
The FXstreet.com trend index remains in slightly bullish set up on the daily chart, while the ob/os index remains overbought. The RSI (14) also remains in bullish set up, consolidating above the 60 level and maintaining the bullish zone between 40 and 80. Short term moving averages are also bullish with price above both the 9 and 20dma’s. Initial resistance sits at 1.4237(high price from last week), while first support sits at 1.4017 (the 9dma).