Australian Greenback (AUD) inched greater. Pair was final at 0.6532 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong observe.
RBA to chop money charge on the subsequent assembly
“Bearish momentum on every day chart reveals indicators of fading whereas RSI rose. We follow our bias to commerce on longs. Resistance right here at 0.66 ranges. Assist at 0.6420/30 ranges (100 DMA, 50% fibo retracement of 2024 excessive to 2025 low), 0.6380 (200 DMA) and 0.6310 (38.2% fibo).”
“Softer 2Q CPI, PPI and decline in job commercials paved the best way for RBA to chop money charge on the subsequent assembly (12 August), which is now largely priced. For the yr, money charge futures are already pointing to about 65bps lower.”
“Until we get additional weak spot in AU knowledge or dovish repricing, in any other case the present dovish expectations is already within the value. Optimistic sentiment could flip to be supportive of AUD.”
