AUDUSD: Week Ahead
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It seems as though the RBA will stick to its current approach in withdrawing monetary support as “inflation is forecast to peak later this year,” and the minutes from the July meeting may fuel speculation for another 50bp rate hike in August as “the Board expects to take further steps in the process of normalising monetary conditions in Australia over the months ahead.”
In turn, more of the same from Governor Philip Lowe and Co. may do little to shore up AUD/USD as the Federal Open Market Committee (FOMC) appears to be on track to deliver a 75bp rate hike later this month, but a shift in the RBA’s forward guidance for monetary policy may generate a bullish reaction in the Australia Dollar if the central bank steps up its effort to combat inflation.
With that said, more of the same from Governor Lowe and Co. may drag on AUD/USD as the FOMC plans to implement a restrictive policy, and the RBA Minutes may do little to prop up the exchange rate unless the central bank adjusts the forward guidance for monetary policy.
Although a clear downtrend is in force, weekly, daily and H4 technical structure hints at higher prices this week, at least until H4 supply from $0.6901-0.6862.
As a result, a move lower from resistance between $0.6813 and $0.68 will likely be recognised as a dip-buying opportunity from $0.6759. Alternatively, failure to tempt sellers from H1 resistance could motivate a breakout above the said H1 resistance zone and open the door for breakout buyers to take aim at the current H4 supply base.
This is not financial advice always do your own research
If you have any questions please leave a comment and I will gladly answer them
Please support my business with your like and comment. Thank you
It seems as though the RBA will stick to its current approach in withdrawing monetary support as “inflation is forecast to peak later this year,” and the minutes from the July meeting may fuel speculation for another 50bp rate hike in August as “the Board expects to take further steps in the process of normalising monetary conditions in Australia over the months ahead.”
In turn, more of the same from Governor Philip Lowe and Co. may do little to shore up AUD/USD as the Federal Open Market Committee (FOMC) appears to be on track to deliver a 75bp rate hike later this month, but a shift in the RBA’s forward guidance for monetary policy may generate a bullish reaction in the Australia Dollar if the central bank steps up its effort to combat inflation.
With that said, more of the same from Governor Lowe and Co. may drag on AUD/USD as the FOMC plans to implement a restrictive policy, and the RBA Minutes may do little to prop up the exchange rate unless the central bank adjusts the forward guidance for monetary policy.
Although a clear downtrend is in force, weekly, daily and H4 technical structure hints at higher prices this week, at least until H4 supply from $0.6901-0.6862.
As a result, a move lower from resistance between $0.6813 and $0.68 will likely be recognised as a dip-buying opportunity from $0.6759. Alternatively, failure to tempt sellers from H1 resistance could motivate a breakout above the said H1 resistance zone and open the door for breakout buyers to take aim at the current H4 supply base.
This is not financial advice always do your own research
If you have any questions please leave a comment and I will gladly answer them
Please support my business with your like and comment. Thank you
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