17 Aug 2015
AUD/USD: bulls looking for 0.7450
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7373 with a high of 0.7385 and low of 0.7370.
AUD/USD was in a minor recovery by the close of fresh multi-year lows last week and found support on Stevens when he said that the depreciation on the currency has done enough to sustain the countries economic growth. There has been an air of optimism from a number of recent speeches and rhetoric from the RBA of late, which is keeping the currency buoyed, despite the Chinese devaluation of the Yuan and negative sentiment in general for the Chinese economy.
From over the weekend, the IMF forecasts that Chinese economic growth to slow to 6.8% in 2015 and to 6.3% in 2016. In the FT, it was reported that the PBoC warned that there will be further two way volatility in CNY at the start of this week. From the calendar, we await the RBA minutes tomorrow, US CPI's and the FOMC minutes later in the week.
AUD/USD levels
Technically, AUD/USD bulls would be looking for a daily chart close above the 23.6% Fibonacci retracement at 0.7440 and the 0.7448 July 21 high. This could trigger a recovery towards the 0.7531 55-day moving average. First, as Valeria Bednarik, chief analyst at FXStreet notes, "The 200 SMA stands now around 0.7415, offering a strong dynamic resistance, and a line in the sand, as the pair has remained below it since late June. Some follow through beyond the MA should signal an upward continuation towards the 0.7500 region. " 0.7235 is major support on further supply.
AUD/USD was in a minor recovery by the close of fresh multi-year lows last week and found support on Stevens when he said that the depreciation on the currency has done enough to sustain the countries economic growth. There has been an air of optimism from a number of recent speeches and rhetoric from the RBA of late, which is keeping the currency buoyed, despite the Chinese devaluation of the Yuan and negative sentiment in general for the Chinese economy.
From over the weekend, the IMF forecasts that Chinese economic growth to slow to 6.8% in 2015 and to 6.3% in 2016. In the FT, it was reported that the PBoC warned that there will be further two way volatility in CNY at the start of this week. From the calendar, we await the RBA minutes tomorrow, US CPI's and the FOMC minutes later in the week.
AUD/USD levels
Technically, AUD/USD bulls would be looking for a daily chart close above the 23.6% Fibonacci retracement at 0.7440 and the 0.7448 July 21 high. This could trigger a recovery towards the 0.7531 55-day moving average. First, as Valeria Bednarik, chief analyst at FXStreet notes, "The 200 SMA stands now around 0.7415, offering a strong dynamic resistance, and a line in the sand, as the pair has remained below it since late June. Some follow through beyond the MA should signal an upward continuation towards the 0.7500 region. " 0.7235 is major support on further supply.