Australian Greenback (AUD) near-term destiny hinges on RBA (assembly on Tue 1230pm SGT), AU wage value index, labor market knowledge and USD strikes this week. AUD was final at 0.6520 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong notice.
Bearish momentum present indicators of fading
“Softer 2Q CPI, PPI and decline in job ads had paved the way in which for RBA to chop money price on the subsequent assembly tomorrow. For the 12 months remaining, money price futures pointed to about 62bps reduce.”
“But it surely stays unsure if RBA language will tilt extra dovish or if the MPC prefers to stay to present ‘cautious and gradual’ tempo of price reduce. A much less dovish or ‘no hurry’ sort of language/ steerage could frustrate AUD bears, however Thu labor market knowledge can even be key to look at.”
“Bearish momentum on every day chart present indicators of fading whereas the rise in RSI pale. Resistance at 0.6550 ranges. Help at 0.65, 0.6430 ranges.”
