Home AUD/USD : Below 50-hour MA hurdle despite upbeat Aussie Q4 current account deficit
FXStreet News

AUD/USD : Below 50-hour MA hurdle despite upbeat Aussie Q4 current account deficit

  • AUD/USD is trading in the red below the 50-hour moving average hurdle even though Australia’s fourth-quarter current account deficit narrowed more-than-expected.  
  • The Reserve Bank of Australia (RBA) is expected to keep rates unchanged. The focus would be on the tone of the policy statement.  

AUD/USD is currently trading in the red at 0.7086, having clocked a low and high of 0.7076 and 0.7097 earlier today.  

Australia’s current account deficit narrowed to A$-7.2 billion in the fourth quarter from A$10.7 billion in the fourth quarter. The markets were expecting the current deficit to of A$9.2 billion.  

The better-than-expected data, however, has failed to put a strong bid under AUD/USD, leaving the pair below the 50-hour MA, currently at 0.7090. Notably, the pair has charted lower highs along that average in the last few days.  

Therefore, a convincing break above that average could yield a strong upside move.  

The breakout, however, may remain elusive, if the RBA keeps rates unchanged as expected, but sounds dovish, raising the already high odds of a rate cut in 2019.  

AUD/USD Technical Levels


 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.