In today’s oil price and forex outlook, we discuss the key levels for AUD/USD, GBP/USD and WTI with Craig Erlam, Senior Market Analyst for Oanda.
West Texas Oil: $42-$43 remains a key level
Erlam highlights that the supply side pressure still remains in the oil market. He sees downside potential in WTI towards $42-$43 levels and notes this area to be key over the coming month as a break below this would open further downside for oil price.
GBP/USD: Awaiting a fundamental shift
Erlam notes that GBP/USD remains a range-play, and will remain in its 1.5150-1.56 range, awaiting a fundamental shift to break on either side of its range.
AUD/USD: Weakness ahead
Besides the Federal rate hike expectations, the Aussie is driven by two key fundamental factors – the Australian economy and RBA’s stance on rates, and the China economic story. Erlam says that the recent fundamental scenario in Australia has again given rise to speculation about rate cut by the RBA which is guiding the AUD/USD cross lower.
On the outlook for the pair, Erlam believes that AUD/USD will remain in its range, and see weakness ahead.
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