21 Jul 2015
AUD/USD and RBA minutes preview
FXStreet (Guatemala) - AUD/USD is currently trading 0.7371 with a high of 0.7378 and a low of 0.7365.
AUD/USD has settled in to a sideways drift having recovered from the 0.7326 lows on the yesterday's continuation of the downside post the Gold shocker. Within the same time frames of the descent, the major commodity currency managed to stage a recovery up towards the 0.74 handle falling just a few pips shy where supply dragged the price in a drift lower to current levels before larger supply found the mid point of the 0.73 handle. Demand came in strong at this point and marks a strong support line that targets the 0.7380 resistance.
Fundamentally, the price will now been driven on the RBA minutes that are due within the next hour where the focus should be on whether the RBA shifts towards more neutral territory taking in to account various variables of improvements domestically and with the nations trading partners. However, capex may be a large consideration with a lack of growth leaning towards a moderate easing bias.
Sean Callow, analyst at Westpac Banking Corporation explained further, "The statement following the decision was largely unchanged from the previous month’s. There may be some discussion in the minutes on slower population growth, which should have little impact on unemployment data though may feed into risks around growth. Given the developments in the past two weeks – Greece looking ‘solved’ and Chinese equities stabilising – the minutes could seem dated. Governor Stevens’ speech at the Anika Foundation lunch tomorrow may be more relevant."
AUD/USD has settled in to a sideways drift having recovered from the 0.7326 lows on the yesterday's continuation of the downside post the Gold shocker. Within the same time frames of the descent, the major commodity currency managed to stage a recovery up towards the 0.74 handle falling just a few pips shy where supply dragged the price in a drift lower to current levels before larger supply found the mid point of the 0.73 handle. Demand came in strong at this point and marks a strong support line that targets the 0.7380 resistance.
Fundamentally, the price will now been driven on the RBA minutes that are due within the next hour where the focus should be on whether the RBA shifts towards more neutral territory taking in to account various variables of improvements domestically and with the nations trading partners. However, capex may be a large consideration with a lack of growth leaning towards a moderate easing bias.
Sean Callow, analyst at Westpac Banking Corporation explained further, "The statement following the decision was largely unchanged from the previous month’s. There may be some discussion in the minutes on slower population growth, which should have little impact on unemployment data though may feed into risks around growth. Given the developments in the past two weeks – Greece looking ‘solved’ and Chinese equities stabilising – the minutes could seem dated. Governor Stevens’ speech at the Anika Foundation lunch tomorrow may be more relevant."