AUDUSD Technical Analysis: Post-Aussie CPI slump sets the stage for a test of 0.70 handle

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AUD/USD Technical Analysis: Post-Aussie CPI slump sets the stage for a test of 0.70 handle

  • The pair extended last week's rejection slide from the very important 200-day SMA and the selling pressure intensified on Wednesday following the release of softer Aussie CPI figures.
  • The pair lost ground for the fifth consecutive session and a sustained break through a short-term ascending trend-line, near the 0.7100 mark, was seen as a key trigger for bearish traders.
  • Despite a sharp intraday slump to the lowest level since March 11, technical indicators on the daily chart are still far from being in the oversold territory and support prospects for further downside.
  • Hence, any attempted recovery towards the 0.7050-60 horizontal zone seems more likely to get sold into and bears might now target an eventual drop towards the key 0.70 psychological mark.

AUD/USD daily chart
Source: https://www.fxstreet.com/news/aud-usd-t ... 1904240724
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AUDUSD hangs near 4-month lows

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AUD/USD hangs near 4-month lows, below 0.70 mark ahead of the key US jobs report


  • The USD steadily builds on the post-FOMC recovery and keeps exerting some pressure.
  • Disappointing Aussie housing market data adds to the ongoing downward momentum.
  • Traders now seemed reluctant to place aggressive bets ahead of the US jobs report.

The AUD/USD pair now seems to have entered a bearish consolidation phase and was seen oscillating in a narrow trading band near four-month lows.

The pair extended this week's retracement slide from levels just above mid-0.7000s and remained on the defensive for the fourth consecutive session. The downward momentum picked up some pace and dragged the pair back below the key 0.70 psychological mark in response to a weaker-than-expected Aussie housing market data.

In fact, Australia's Building Permits fell sharply by 15.5% m/m in March, reversing a major part of 19.1% gains recorded in February and worse than consensus estimates pointing to a 14% drop. This marked a 27.3% drop on a yearly basis and exerted some downward pressure on the Australian Dollar.

The slide, however, seemed limited as investors now seemed reluctant to place any aggressive bet and preferred to wait on the sideline ahead of today's important release of the closely watched US monthly jobs report - popularly known as NFP, due later during the early North-American session.

This followed by scheduled speeches by a slew of influential FOMC members might influence the USD price dynamics and produce some meaningful trading opportunities on the last trading day of the week and ahead of next week's RBA monetary policy update, where the central bank is expected to cut interest rates.

Technical levels to watch

Immediate support is pegged near the 0.6980 level, below which the pair is likely to accelerate the fall towards the 0.6935 region en-route the 0.6900 round figure mark. On the flip side, any meaningful recovery attempt might now confront some fresh supply near the 0.7010-15 region, above which a bout of short-covering could lift the pair further towards weekly highs resistance near the 0.7070 region.

Sources: https://forex-station.com (Chart) & https://www.fxstreet.com/news/aud-usd-h ... 1905030732 (Article)
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Re: AUD news

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J.P. Morgan expects the RBA will slash Australia's cash rate to 0.5%

>J.P. Morgan expects the RBA will slash Australia’s cash rate to just 0.5% by the middle of next year.

> The cash rate currently sits at 1.5%

> The bank says 50 basis points of cuts are unlikely to be sufficient to lower unemployment to levels where inflationary pressures begin to increase.

> Financial markets see a 25 basis point rate cut in June as a near certainty. Another 25 basis point cut is also fully priced by November.



Full Story : https://www.businessinsider.com.au/rba- ... ent-2019-5
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Jimmy

Re: AUD news

50
Last October the Reserve Bank of Australia (RBA) set in circulation more than 46 million $50 currency notes with an insignificant misspelling, but monumental in sheer scope. The value of the misprinted notes is said to be over $2.3 billion AUD, or $1.58 billion USD. Never before has a spelling mistake cost more than now. This is the first time in the history of the RBA that a monetary bill has been issued for public circulation with a misprint, that reoccurs not once but thrice on each of the 46 million bills.

It’s only ironic that the misspelled word is none other than “responsibility” which the imprint has penned thusly: “RESPONSIBILTY”. :facepalm:


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