Back
1 Apr 2014
AUD/USD indecisive; Doji formation on hourly
FXStreet (Guatemala) - AUD/USD is indecisive, short-term. ahead of the RBA later today. Currently, AUD/USD is trading at 0.9274, up 0.11% on the day, having posted a daily high at 0.9277 and low at 0.9264.
Daily RSI sits at 67.97, in neutral territory, but over the past 20 days, the exponential average closing price is 0.9099, and trending higher indicating that the bulls are stacking up.
AUD/USD awaits RBA
Strategist, Sean Callow at Westpac Banking Corporation ABN explained that the RBA Board meeting should be a short one today, with policy firmly on hold at 2.5%. “The statement should conclude with March’s declaration that “the most prudent course is likely to be a period of stability in interest rates.” Since the last meeting, we have seen a decent GDP reading, strong employment (finally) but no update on CPI or business investment intentions. Commentary from the RBA last week firmly indicated no change in policy near term, with signs that low interest rates are having an effect but only gradually and very soft wages growth likely to ensure inflation cools in H2 14”.
AUD/USD exchange high rate to be retained
He added and reminded us that March’s observation that “the exchange rate remains high by historical standards” may well be retained. “Westpac looks for no change until H2 2015 when the cash rate should rise. Ahead of the meeting, markets are pricing flat rates to Sep, +7bp by Dec, +15bp by March 2015”.
AUD/USD Levels (Doji hourly)
Current price is 0.9275, with resistance ahead at 0.9277 (Daily High), 0.9280 (Yesterday's High), 0.9285 (Daily Classic R1), 0.9321 (Daily ClassicR2) and 0.9346 (Daily Classic R3). Next support to the downside can be found at 0.9264 (Daily Open), 0.9264 (Monthly High), 0.9264 (Weekly High), 0.9264 (Daily Low) and 0.9260 (Daily Classic PP). Looking at price patterns, we can see a Doji 1-hour candlestick formation.
Daily RSI sits at 67.97, in neutral territory, but over the past 20 days, the exponential average closing price is 0.9099, and trending higher indicating that the bulls are stacking up.
AUD/USD awaits RBA
Strategist, Sean Callow at Westpac Banking Corporation ABN explained that the RBA Board meeting should be a short one today, with policy firmly on hold at 2.5%. “The statement should conclude with March’s declaration that “the most prudent course is likely to be a period of stability in interest rates.” Since the last meeting, we have seen a decent GDP reading, strong employment (finally) but no update on CPI or business investment intentions. Commentary from the RBA last week firmly indicated no change in policy near term, with signs that low interest rates are having an effect but only gradually and very soft wages growth likely to ensure inflation cools in H2 14”.
AUD/USD exchange high rate to be retained
He added and reminded us that March’s observation that “the exchange rate remains high by historical standards” may well be retained. “Westpac looks for no change until H2 2015 when the cash rate should rise. Ahead of the meeting, markets are pricing flat rates to Sep, +7bp by Dec, +15bp by March 2015”.
AUD/USD Levels (Doji hourly)
Current price is 0.9275, with resistance ahead at 0.9277 (Daily High), 0.9280 (Yesterday's High), 0.9285 (Daily Classic R1), 0.9321 (Daily ClassicR2) and 0.9346 (Daily Classic R3). Next support to the downside can be found at 0.9264 (Daily Open), 0.9264 (Monthly High), 0.9264 (Weekly High), 0.9264 (Daily Low) and 0.9260 (Daily Classic PP). Looking at price patterns, we can see a Doji 1-hour candlestick formation.