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21 Aug 2015
AUD/USD's 55 DMA is key resistance
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7335 with a high of 0.7360 and a low of 0.7286.
AUD/USD has been robust since the RBA officials on a number of occasions and through various mediums have change their tone on the Aussie's value and have basically said that the price is reflecting a fairer level in respect to the commodity prices and is advantageous to the Australian economy as a whole, while the recent jobs sector data was looking healthier.
Analysts at TD Securities explained, "The RBA is not dovish enough for a further significant correction, we see another decent employment report, and iron ore seems to have found a floor. As the AUD is well below the long-run average of $US0.76, the urgency to jawbone is fading, and the market is already short. Our year end target is $US0.74."
Sp, there has been some room for the Aussie to drift higher as traders unwind short positions with less scope for further downside at this stage. At the same time, the FOMC minutes were dovish and markets are pricing out a September hike while global uncertainty, specifically in China, are weighing on the global economic outlook and a sting dollar may not be so advantageous to global growth now domestically for the US at this moment.
AUD/USD bearish below 0.7448/94
Technically, however, Karen Jones, chief analyst at Commerzbank said that we really we need to see a close above the 0.7448 July 21 high and the 0.7494 55 day moving average to negate downside pressure.
AUD/USD has been robust since the RBA officials on a number of occasions and through various mediums have change their tone on the Aussie's value and have basically said that the price is reflecting a fairer level in respect to the commodity prices and is advantageous to the Australian economy as a whole, while the recent jobs sector data was looking healthier.
Analysts at TD Securities explained, "The RBA is not dovish enough for a further significant correction, we see another decent employment report, and iron ore seems to have found a floor. As the AUD is well below the long-run average of $US0.76, the urgency to jawbone is fading, and the market is already short. Our year end target is $US0.74."
Sp, there has been some room for the Aussie to drift higher as traders unwind short positions with less scope for further downside at this stage. At the same time, the FOMC minutes were dovish and markets are pricing out a September hike while global uncertainty, specifically in China, are weighing on the global economic outlook and a sting dollar may not be so advantageous to global growth now domestically for the US at this moment.
AUD/USD bearish below 0.7448/94
Technically, however, Karen Jones, chief analyst at Commerzbank said that we really we need to see a close above the 0.7448 July 21 high and the 0.7494 55 day moving average to negate downside pressure.