FxWirePro: AUD/USD Breaks Below 0.7450 (38.2% Fib), Bears Tightening Their Grip Post RBA SoMP Release

FxWirePro: AUD/USD Breaks Below 0.7450 (38.2% Fib), Bears Tightening Their Grip Post RBA SoMP Release

6 May 2016, 06:23
Roberto Jacobs
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FxWirePro: AUD/USD Breaks Below 0.7450 (38.2% Fib), Bears Tightening Their Grip Post RBA SoMP Release

  • AUD/USD drops from 0.7470 region to break below 38.2% Fib of Jan to April rise at 0.7450. 
  • Aussie bears tightening their grip, resume downside following the release of RBA’s Statement of Monetary Policy (SoMP). 
  • Latest RBA SoMP showed downward revisions to inflation and wage growth forecasts, keeps alive rate cut possibilities. 
  • The risk-off environment has also returned post RBA, as reflected by the uptick in the VIX and lower US 30-Year US Treasury yields.  
  • Markets cautious heading into the US NFP report due later today, which may provide next direction on the US dollar across the board, eventually impacting the pair. 
  • We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-Aussie-buoyed-by-upbeat-data-flow-AUD-USD-edges-higher-from-382-Fib-support-204294). 
  • Target 1 has been achieved, we recommend holding for further downside.


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