3 Aug 2015
AUD/USD: bearish phase close to an end? - UOB
FXStreet (Guatemala) - Analysts at UOB Group explained that the Australian dollar spent last week treading water near the 0.730-figure against its US counterpart as prices waited for new direction cues after dropping to a six-year low.
Key Quotes:
"The pair continues to flirt around similar levels this morning, muted reaction seen to the release of Caixin China manufacturing PMI final reading of 47.8 for July. All eyes will be on the RBA’s decision on Tuesday. Although the RBA remains open to further easing, we believe it wants to stay on the sidelines for now to monitor the impact of the 50bps cuts already delivered this year.
Bearish: Increasingly likely that the current bearish AUD phase is close to an end.
AUD dipped to a low of 0.7234 last Friday, holding just above the revised target at 0.7230. The subsequent rally touched a high of 0.7367, just shy of the stop-loss level at 0.7370. While we are not ruling out another leg lower to 0.7230, the current price action appears to be the early stages of a bottoming process. In other words, it is getting increasingly likely that the current bearish AUD phase that started late last month is close to an end. "
Key Quotes:
"The pair continues to flirt around similar levels this morning, muted reaction seen to the release of Caixin China manufacturing PMI final reading of 47.8 for July. All eyes will be on the RBA’s decision on Tuesday. Although the RBA remains open to further easing, we believe it wants to stay on the sidelines for now to monitor the impact of the 50bps cuts already delivered this year.
Bearish: Increasingly likely that the current bearish AUD phase is close to an end.
AUD dipped to a low of 0.7234 last Friday, holding just above the revised target at 0.7230. The subsequent rally touched a high of 0.7367, just shy of the stop-loss level at 0.7370. While we are not ruling out another leg lower to 0.7230, the current price action appears to be the early stages of a bottoming process. In other words, it is getting increasingly likely that the current bearish AUD phase that started late last month is close to an end. "