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26 Feb 2013
Forex: AUD/USD threatens 1.0225 double bottom; RBA's Debelle headlines unsupportive
In the state of semi-panic that we still at, risky assets become more susceptible to falls. The Australian Dollar, after finding a double bottom sub 1.0230 last week, is again pressured toward its yearly lows after RBA’s Assistant Governor Debelle brought back the ghosts of a possible cut, aying the RBA can cut rates to counterbalance a high $A.
The comments follow last week's RBA Governor Stevens testimony before the House of Representatives Standing Committee on Economics, where he sounded as somebody who seems to have little intention to cut rates for now, leading to the AUD/USD carving out the mentioned double bottom.
On the daily chart, the AUD/USD continues to be well capped by a descending 45º inclined 20-day EMA, proving reliable in the last 5 days upside attempts over the past two weeks. The context to trade the pair is still one of range-bound between 1.0220/30 and 1.0360/70, with traders possibly still interested in spotting opportunities at the edges as clarity over the RBA outlook on rates is still uncertain. Should risk aversion pick-up and force further USD bids, the 1.02 and 1.0170 support may not be discarded.
The comments follow last week's RBA Governor Stevens testimony before the House of Representatives Standing Committee on Economics, where he sounded as somebody who seems to have little intention to cut rates for now, leading to the AUD/USD carving out the mentioned double bottom.
On the daily chart, the AUD/USD continues to be well capped by a descending 45º inclined 20-day EMA, proving reliable in the last 5 days upside attempts over the past two weeks. The context to trade the pair is still one of range-bound between 1.0220/30 and 1.0360/70, with traders possibly still interested in spotting opportunities at the edges as clarity over the RBA outlook on rates is still uncertain. Should risk aversion pick-up and force further USD bids, the 1.02 and 1.0170 support may not be discarded.