Overnight, the RBA left rates steady at 2.0% and the Aussie rallied 0.5% but ran
into supply with a strong greenback across the board.
The price was
drifting on the bid in early Asia from the mid point of the 0.71 handle and was
propelled on the event to score territory above the 0.7200 level scoring a high
of 0.7219. However, the RBA
re-introduced an easing bias, and while this may have been a
reluctant cautionary measure that was mostly ignored and presumed a reason to be
bid, markets are now starting to price in the possibility of subsequent action
from the RBA in December if domestic credit growth begins to tail off combined
with continued external headwinds.
The RBA will update its forecasts in
its Statement on Monetary Policy on Friday before the next policy meeting on
December 1st. Now all eyes are back on the US and Nonfarm Payrolls at the end of
the week.
AUD/USD levels
Technically, AUD/USD is
en route back towards the 55 day moving average at 0.7141again after topping out
on the 0.72 handle and unable to break up convincingly with the 0.7385 Fibo
retracement of the 2014-2015 downtrend and early October highs way off in the
distance keeping a bearish lid on things.
To the downside, we are in
familiar territory and ranges until 0.7066. This area of support guards the
medium term target for the September lows at 0.6940 with 0.6774 2004 low on the
wide.
