EURAUD has traded into a key pivot as support prior to the RBA rate decision, which will decide the RBA's interest rate going forward. Technically the pair is at a key support zone and the RSI is giving bullish divergence. The EURAUD has pulled back following a multi week bull market, and we anticipate the RBA rate decision to be the catalyst for a continuation in...
The dovish tapering decision. During its monetary policy decision yesterday, the Reserve Bank of Australia (RBA) kept its cash rate unchanged at 0.10%. As promised, the central bank proceeded with its quantitative easing (QE) tapering plan announced back in the July’s meeting. What came as a surprise is the duration of the new round of QE. Previously, the RBA...
At its monetary policy meeting from earlier today, the RBA observed worsening growth prospects in Australia due to the Delta variant. These muted forecasts for Q3 are likely to prompt a correction on AUDUSD's uptrend. The uptrend continues to be active, as underpinned by the ADX indicator, which has been threading above the 25-point threshold for quite a while....
thanks to the RBA reducing their bond asset purchases (aka they're tapering) .. Aud should see a nice bounce. All of these banks are tapering except or usd.. that should be a signal within itself. "Defying expectations, the central bank is sticking with its plan to taper asset purchases from AUD5b to 4b until mid-February 2022"
I will be waiting for a good opportunity to take long position at around 0.740000. USD continuing its bearish trend. COVID 19 Cases and RBA cash rate possible to remain same leaving AUD value unaffected. Based on USD weakness, I am in bullsih bias of AUDUSD. Once price reaches my buy area, I will be watching price action on LTF to take buy entry.
The Australian dollar is in negative territory on Monday, after flexing some muscle last week. AUD/USD is trading at 0.7430, down 0.35% on the day. The currency shot up 1.94% last week, as investor appetite for risk improved, which was bullish for minor currencies like the Australian dollar. The Australian dollar ended the week on a high note, with strong gains...
Fundamentals: It has been a hawkish month for the Reserve Bank of Australia. The recent meeting suggests that their guidance ramps up into a more hawkish tone. Both monetary and fiscal policies are aussie positive, so far. One thing I keep in mind is their fiscal policy in response to the current covid-19 lockdowns. I believe that the Reserve Bank of New...
AUDUSD has consolidated below at 0.748 and we expect below this resistance level the currency pair to move lower toward the psychological 0.7 level. Non farm payrolls came in at 943K vs 870K forecast boosting the US dollar as Australia continues to be impacted by the covid delta variant. Additionally, treasury yields have risen on the back of the strong payroll...
Further downside possible, but looks short-lived while above 200MA and importantly 0.703x. A lot of noise from the region, with PBOC lifting the bid temporarily and clearing the way for the test of 0.703x. This is an important area structurally as those with a background in waves are tracking for the beginning of an impulsive wave 3 inside a major. Here...
Three days ago, the Reserve Bank of Australia (RBA) delivered a little surprise when it decided to stick with its quantitative easing (QE) plan announced back in July despite the recent spike in COVID cases in Australia. (Refer to my post "RBA Sticks With QE Tapering Plan (04 August 2021)" on RBA monetary policy) Details on why the central bank decides to...
The RBA’s decision. During their monetary policy meeting yesterday, the Reserve Bank of Australia (RBA) kept its monetary policy unchanged, holding interest rate at 0.10% and quantitative easing (QE) at a rate of A$5 billion per week. A little surprise. With the recent spike in COVID cases in Australia due to the highly contagious Delta variant, the market was...
The Reserve Bank of Australia’s (RBA) keeping of September tapering on the table, despite covid woes at home, offered over 40 pips of immediate upside to the AUD/USD pair on the announcement. However, the quote remained below a one-month-old horizontal hurdle surrounding 0.7400–7410 and seems to ease of late. Although firmer RSI and RBA’s hawkish title favor...
Despite pouring cold water on the face of monetary policy adjustment hopes, the Reserve Bank of Australia (RBA) manages to keep AUDUSD at the front of the G10 gainers. The Aussie central bank refrained from widely teased yields targets while also signaling a plan for further bond purchases during Tuesday’s monetary policy meeting. However, downbeat US dollar and...
So far the sudden creep up in the Australian 3 year yield has gone unnoticed. But it has jumped massively in the last two weeks from 0.07% to 0.26% For months the RBA has kept the rate under 0.10%. However, this time it has left the rate unchecked. According to Michael West, this is the RBA testing the market. The three year rate is the rate that Banks use...
The Australian dollar is in positive territory on Monday. In the European session, AUD/USD is trading at 0.7733, up 0.32% on the day. The week started out on a sour note, as inflation fell in May. The Melbourne Institute (MI) Inflation Gauge, a monthly release, fell 0.2% in May, marking its first decline in seven months. With major economies showing stronger...
The Australian dollar has reversed directions on Wednesday and recorded considerable losses. In the European session, AUD/USD is trading at 0.7750, down 0.52% on the day. Investors gave the Aussie a thumbs down on Wednesday after Westpac Consumer Sentiment fell 4.8% in May. The trend of improving consumer confidence over the past three months was broken. Still, a...
The Aussie will be highly watched this week as RBA releases its monetary policy as well as employment data. AUDUSD was somewhat bearish last week as it fell but found support and recovered half of the loss. The rebound came from multiple technical support such as the bottom of a rising channel as well as moving averages. Otherwise, AUDUSD is technically a...