Current trend
The quotes of AUD/USD are falling under the influence of growing US dollar and today's statement by the RBA head Philip Lowe. He believes it is impossible to increase the interest rates in the near future as it would have a negative impact on the whole Australian banking system and on the welfare of Australian citizens. Also the pair is under pressure from the results of 2-days meeting of the Fed. As was expected, the regulator left the interest rate unchanged on the level of 1.25%. However, it hinted that the increase of the interest rate this year was still possible. Also yesterday the Fed announced the beginning of the budget cut program in October. The regulator plans to reduce assets by $10 bln every month. Investors reacted to this news by active purchases of the US currency. In view of this the rate of AUD/USD dropped by 0.65% to the level of 0.7950.
Today market players will pay attention to statistics on initial jobless claims from the USA (14:30 GMT+2). The indicator is expected to grow to 300K a week from 284K a week earlier. The confirmation of the outlook or values above expected may support the rate of AUD/USD in the short term.
Support and resistance
Technical indicators show the continuation of the current downward tendency: Bollinger Bands are directed downwards, MACD histogram is actively reducing in the positive zone and is about to enter the negative one.
Support levels: 0.7939, 0.7904, 0.7870.
Resistance levels: 0.8005, 0.8065, 0.8124.
Trading tips
Sell positions should be opened below the level of 0.7939 with targets at 0.7904-0.7870 and stop-loss at 0.7965.
Buy positions may be opened above 0.8005 with targets at 0.8065-0.8124 and stop-loss at 0.7970.
The quotes of AUD/USD are falling under the influence of growing US dollar and today's statement by the RBA head Philip Lowe. He believes it is impossible to increase the interest rates in the near future as it would have a negative impact on the whole Australian banking system and on the welfare of Australian citizens. Also the pair is under pressure from the results of 2-days meeting of the Fed. As was expected, the regulator left the interest rate unchanged on the level of 1.25%. However, it hinted that the increase of the interest rate this year was still possible. Also yesterday the Fed announced the beginning of the budget cut program in October. The regulator plans to reduce assets by $10 bln every month. Investors reacted to this news by active purchases of the US currency. In view of this the rate of AUD/USD dropped by 0.65% to the level of 0.7950.
Today market players will pay attention to statistics on initial jobless claims from the USA (14:30 GMT+2). The indicator is expected to grow to 300K a week from 284K a week earlier. The confirmation of the outlook or values above expected may support the rate of AUD/USD in the short term.
Support and resistance
Technical indicators show the continuation of the current downward tendency: Bollinger Bands are directed downwards, MACD histogram is actively reducing in the positive zone and is about to enter the negative one.
Support levels: 0.7939, 0.7904, 0.7870.
Resistance levels: 0.8005, 0.8065, 0.8124.
Trading tips
Sell positions should be opened below the level of 0.7939 with targets at 0.7904-0.7870 and stop-loss at 0.7965.
Buy positions may be opened above 0.8005 with targets at 0.8065-0.8124 and stop-loss at 0.7970.