FxWirePro: AUD/USD Struggles at 0.77 Handle, Bias Lower

FxWirePro: AUD/USD Struggles at 0.77 Handle, Bias Lower

26 April 2016, 09:05
Roberto Jacobs
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FxWirePro: AUD/USD Struggles at 0.77 Handle, Bias Lower

  • Charts show scope for some downside in AUD/USD, but fundamentally it is difficult to argue for AUD downside. 
  • Rally in iron ore and steel prices, plus by oil’s resilience, argues for an extension of existing AUD speculative longs.  
  • Domestic data (Q1 CPI due Wed) adds to the case for the RBA to maintain a steady hand.  
  • Expectations are for 0.4% q/q, 1.9% y/y headline inflation, 0.6% q/q for the average of the RBA core measures, leaving these at 2.0% y/y, the bottom of the band. 
  • That said, daily charts show some weakness. Pair struggling at the 0.77 handle, trades a tight range. 
  • Strong resistance seen around 0.7730 levels, Stcohs and MACD are biased lower.  
  • Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-struggles-at-077-handle-good-to-sell-rallies-199724) is progressing. Hold for targets. 


The material has been provided by InstaForex Company - www.instaforex.com



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