AUD/USD: A Correction Lower Is Overdue; Above 0.80 To Be

0

The Australian dollar enjoyed the hawkish meeting minutes from the RBA. Attempts to dampen the expectations were not successful. What’s next? The big number can provide a trigger.

Here is their view, courtesy of eFXnews:

BTMU FX Strategy Research argues that AUD/USD looks over-extended based on policy expectations given there has been no sign of any change in forward guidance and given the low level of inflation and the record low levels of hourly wage growth.

“So Deputy Governor Debelle’s comments will help to cap AUD/USD for now. Of course USD sentiment is fragile and broad FX sentiment still points to upside risks. But we would expect levels above 0.8000 to be met with more explicit opposition by RBA officials that will help curtail gains.

AUD/USD is 7% higher since the start of June and a correction lower is overdue,” BTMU adds.

For lots more FX trades from major banks, sign up to eFXplus

By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.

Get the 5 most predictable currency pairs

About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

Comments are closed.