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2 Sep 2015
AUD/USD bears not quite committing a test of 0.7000 just yet
FXStreet (Guatemala) - AUD/USD continues to print fresh 6-year lows and embarks on testing the April 2009 levels of where the rally from 0.6284 took out the resistance of 0.6973.
AUD/USD is testing the downside in early Asia with thin liquidity, allowing the bears a free reign on the downside in suit of the overnight pressures that continued on the offer after yesterday's RBA who were comfortable to hold rates while the economy's "moderate expansion" may be impaired be the weakening growth outlook for China and Asia.
AUD/USD free to fall
Therefore, although bears have not quite committed to a test of 0.7000 yet, while the RBA welcomes a lower exchange rate while it continues to adjust to commodity prices, markets are comfortable taking the Aussie lower in anticipation of increasing downside risks to the RBA's growth and inflation forecasts, thus require further easing from the Central bank at some stage in the future, vs a backdrop a Fed that may be holding off until 2016 before an appropriate time might be found to hike rates. This month is critical in that respect, and data will be very key to the Fed's decision.
AUD/USD risks to June 2004 lows on key data
This week brings the Nonfarm Payrolls and we have the last of the key events from the Australian economy coming up today in the form of the GDP results for Q2. A breach of 0.6980/0.7000 opens up 0.6776, the June 2004 low.
AUD/USD is testing the downside in early Asia with thin liquidity, allowing the bears a free reign on the downside in suit of the overnight pressures that continued on the offer after yesterday's RBA who were comfortable to hold rates while the economy's "moderate expansion" may be impaired be the weakening growth outlook for China and Asia.
AUD/USD free to fall
Therefore, although bears have not quite committed to a test of 0.7000 yet, while the RBA welcomes a lower exchange rate while it continues to adjust to commodity prices, markets are comfortable taking the Aussie lower in anticipation of increasing downside risks to the RBA's growth and inflation forecasts, thus require further easing from the Central bank at some stage in the future, vs a backdrop a Fed that may be holding off until 2016 before an appropriate time might be found to hike rates. This month is critical in that respect, and data will be very key to the Fed's decision.
AUD/USD risks to June 2004 lows on key data
This week brings the Nonfarm Payrolls and we have the last of the key events from the Australian economy coming up today in the form of the GDP results for Q2. A breach of 0.6980/0.7000 opens up 0.6776, the June 2004 low.