Free Trial

FOREX: AUDUSD Prints Fresh Weekly High Following RBA Hold

FOREX
  • AUDUSD (+0.50%) has revisited the Monday highs in recent trade, printing a fresh weekly high of 0.6620. Moves this week have been dominated by a softer dollar backdrop, and the resumption of AUD strength overnight has been assisted by the RBA maintaining a hawkish stance, having seen little change in the economy over the last few months to warrant an adjustment to its higher-for-longer strategy.
  • Price action narrows the gap to initial resistance at 0.6648, the 20-day EMA. The more significant 50-day resides at 0.6691, which may limit the short-term topside given overnight straddle pricing currently points to a ~50pip move either side of the strike.
  • Furthermore, the latest pause to the overall AUDUSD bear cycle appears to be a flag formation, a bearish continuation signal that reinforces the current trend condition.
  • Indeed, with major equity indices consolidating towards the October lows, any resumption of weakness for the pair would refocus attention on 0.6490, the 76.4% retracement of the Aug 5 - Sep 30 bull leg. Below here 0.6472, the Aug 6 low marks key support.
173 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • AUDUSD (+0.50%) has revisited the Monday highs in recent trade, printing a fresh weekly high of 0.6620. Moves this week have been dominated by a softer dollar backdrop, and the resumption of AUD strength overnight has been assisted by the RBA maintaining a hawkish stance, having seen little change in the economy over the last few months to warrant an adjustment to its higher-for-longer strategy.
  • Price action narrows the gap to initial resistance at 0.6648, the 20-day EMA. The more significant 50-day resides at 0.6691, which may limit the short-term topside given overnight straddle pricing currently points to a ~50pip move either side of the strike.
  • Furthermore, the latest pause to the overall AUDUSD bear cycle appears to be a flag formation, a bearish continuation signal that reinforces the current trend condition.
  • Indeed, with major equity indices consolidating towards the October lows, any resumption of weakness for the pair would refocus attention on 0.6490, the 76.4% retracement of the Aug 5 - Sep 30 bull leg. Below here 0.6472, the Aug 6 low marks key support.