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Forex pairs in this Article » AUD/USD
FXstreet.com (Barcelona) - The Aussie dollar is recovering some ground around 1.0550 after bottoming in the vicinity of 1.0525 on soft inflation figures during the fourth quarter. In fact, the CPI rose 0.2% QoQ and 2.2% on a yearly basis, below the expected +0.4% and 2.4%, respectively.

Adrian Foster, analyst at Rabobank, commented, "On balance, I don't think they will cut rates at that meeting against the better global backdrop (China, Europe, the US and even Japan)& The currency is key here as domestic manufacturing screams about it and whilst I don't know what level of the AU$ would push the RBA to cut rates I suspect above 1.06 vs the US$ (which has capped it since early last year) would put it firmly on their radar& So my thought is don't buy the AU$ near 1.06 because if it looks to be holding above that level the RBA will help get it lower".

The cross is now down 0.11% at 1.0554 with the next support at 1.0549 (MA10d) ahead of 1.0545 (hourly high/low Jan.22) and then 1.0505 (low Jan.22).
On the flip side, a break above 1.0577 (high Jan.22) would lead the way to 1.0580 (high Jan.16) and finally 1.0599 (high Jan.10).
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