Instrument: AUDUSD
Bullish Preference:
A Buy position is envisaged if the price trades above 0.65872 With Take profit at 0.66002
Bearish Preference:
A Sell position is envisaged if the price trades below 0.65621 with Take profit at 0.65526
Fundamentals:
AUD: Cash Rate 4:30AM
RBA Rate Statement 4:30AM
USD: ISM Services PMI 4:00PM
JOLTS Job Openings 4:00PM
Comment:
The Australian dollar was subject to the Reserve Bank of Australia’s (RBA) interest rate decision earlier this morning where the central bank expectedly decided to keep rates on hold at 4.35%. A quick recap to the previous meeting saw the RBA hike rates as inflationary pressures, increasing housing prices and a tight labor market played a key role in the assessment. Since then, softening monthly CPI indicator data and the lagged influence restrictive monetary policy has weighed on housing prices alongside a slightly weaker labor market. Overall, the robust jobs market could be the most concerning variable for the RBA – similar to that of the US economy and the Federal Reserve.
AUD/USD daily price action above shows bulls being limited by trendline resistance (black) coinciding with a push off the overbought one on the Relative Strength Index (RSI). Current support now comes from the 200-day moving average (blue) but could easily break below should ISM and JOLTs come in stronger. Remember, escalating tensions in the Middle East have also contributed to souring risk sentiment which could supplement USD upside.
Analysis: SCRUM Team