GDP Partials & RBA Rhetoric Eyed, Technicals Look Soft

The broader USD gyrations and uptick in equity indices ultimately drove AUD/USD price action on Monday, with the rate lodging a marginal uptick after Friday’s sell off, benefitting from Fed’ Chair Powell’s cautious rhetoric ahead of the NY close.

• The rate last deals little changed at $0.7145. Our technical analyst notes that AUD/USD remains soft after its slide accelerated Friday. Last week's price action resulted in a break of the base of its bull channel drawn from the Aug 20 low. Furthermore, support at the Sep 29 low has been cleared, reinforcing bearish conditions. Moving average signals have also recently shifted to bear mode, underscoring the bearish theme. This has exposed key support at the Aug 20 low ($0.7106). Initial resistance is seen at the Nov 24 high ($0.7228).
• Q3 GDP partial data headlines the local economic docket on Tuesday (ahead of Wednesday’s GDP print), with current a/c data due. Elsewhere, building approvals and private sector credit will hit. Comments from RBA Deputy Governor Debelle, on the “The Indigenous Economy in Australia and the Reserve Bank of Australia,” failed to provide anything in the way of meaningful interest for markets. Debelle will also speak in the Sydney afternoon (02:00 London/13:00 Sydney), as he gives a fireside chat at the Australia Conference.