FX_Trader_Analyst
Long

AUDUSD Bullish, but for how long?

FX:AUDUSD   Australian Dollar/U.S. Dollar
This trade analysis is part of my diary. Please let me know if it was helful but also your suggestion for improvements

RBA minutes delivered quite positive outlook and no need fur further cuts is necessary unless situation in the financial markets would change. We know however that high Aussie value is not very stimulative for our economy hence the upside is limited. Aussie has risen based on the commodity prices appreciation and weaker USD. Currently Aussie breached over the resistance of 76c and closed at 76c after reaching .7675c levels. From fundamental prospective Aussie might rise on back of the strongest commodities driven by WTI. There is no significant reason for USD to strengthen and FED with Yellen really undermined USD strength last week when they cut inflation projections and also further rates cut.
I would see taking profit as a reason for upcoming short term correction in AUD and then continuation towards .78 before RBA might decide to "talk down the dollar" Alternatively correction might continue to the .74c .73c levels.
Thanks for your analisis. The "talk down" might come next Tuesday (RBA's Governor Glenn Stevens Speech).
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FX_Trader_Analyst droadneggel1a
Thank you for your comment! It can certainly be next meeting. As we have seen before policy makers are great in positions markets by using appropriate words
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