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5 Feb 2015
AUD/USD toying with 0.7800
FXStreet (Edinburgh) - The Aussie dollar is prolonging its intraday recovery on Thursday, pushing AUD/USD to the boundaries of 0.7800 the figure.
AUD/USD focus on SoMP
The Antipodean pair is looking to revert yesterday’s pullback, eyeing the critical barrier at 0.7800 after bottoming out near 0.7730 overnight. The brief knee-jerk in the spot came after New Home Sales gauged by HIA contracted 1.9% MoM in December and Retail Sales expanded below forecasts 0.2% during the same period.
Tomorrow’s RBA Statement on Monetary Policy will be critical for the AUD, following the recent 25 bp refi rate cut (Tuesday). Analyst at TD Securities commented “We pencil in May for the next –25bp to 2% to allow digestion of the first rate cut, monitor offshore events and peer at any post-cut reaction”.
AUD/USD levels to consider
The pair is now 0.37% at 0.7774 with the next support at 0.7725 (hourly low Feb.3) ahead of 0.7700 (psychological level) and finally 0.7627 (low Feb.3). On the flip side, a breakout of 0.7856 (10-d MA) would aim for 0.78882 (38.2% of 0.8295-0.7627) and then 0.7907 (high Jan.29).
AUD/USD focus on SoMP
The Antipodean pair is looking to revert yesterday’s pullback, eyeing the critical barrier at 0.7800 after bottoming out near 0.7730 overnight. The brief knee-jerk in the spot came after New Home Sales gauged by HIA contracted 1.9% MoM in December and Retail Sales expanded below forecasts 0.2% during the same period.
Tomorrow’s RBA Statement on Monetary Policy will be critical for the AUD, following the recent 25 bp refi rate cut (Tuesday). Analyst at TD Securities commented “We pencil in May for the next –25bp to 2% to allow digestion of the first rate cut, monitor offshore events and peer at any post-cut reaction”.
AUD/USD levels to consider
The pair is now 0.37% at 0.7774 with the next support at 0.7725 (hourly low Feb.3) ahead of 0.7700 (psychological level) and finally 0.7627 (low Feb.3). On the flip side, a breakout of 0.7856 (10-d MA) would aim for 0.78882 (38.2% of 0.8295-0.7627) and then 0.7907 (high Jan.29).