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2 Mar 2015
AUD/USD: Upside limited; prevailing headwinds below 0.8035
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7781 with a high of 0.7809 and a low of 0.7777.
AUD/USD bears are challenging the February commencing sideways channel at the start of this week on a strong greenback, with the upside attempts recently failing just ahead of the 0.7930 downtrend. This attempt at the upside came on the back of ideas, according to Brown Brothers Harriman, that the Reserve Bank of Australia may not cut rates this week.
"However, weak capex has kept the OIS, and forward markets nearly evenly split. If the RBA does not cut rates in March, it will simply raise the conviction levels that a cut will be delivered in Q2. A number of participants expect two cuts to be delivered. We are more inclined to sell into Aussie gains, which the technical indicators still are consistent with, toward $0.7940-50 on ideas that resistance around $0.8000 will be formidable. " Karen Jones, chief analyst at Commerzbank suggested that a close above 0.8035 is needed to alleviate downside pressure.
AUD/USD bears are challenging the February commencing sideways channel at the start of this week on a strong greenback, with the upside attempts recently failing just ahead of the 0.7930 downtrend. This attempt at the upside came on the back of ideas, according to Brown Brothers Harriman, that the Reserve Bank of Australia may not cut rates this week.
"However, weak capex has kept the OIS, and forward markets nearly evenly split. If the RBA does not cut rates in March, it will simply raise the conviction levels that a cut will be delivered in Q2. A number of participants expect two cuts to be delivered. We are more inclined to sell into Aussie gains, which the technical indicators still are consistent with, toward $0.7940-50 on ideas that resistance around $0.8000 will be formidable. " Karen Jones, chief analyst at Commerzbank suggested that a close above 0.8035 is needed to alleviate downside pressure.