AUD/USD: interest rate is likely to fall on 06.07.2015

July 6, 2015

Current trend

Australian dollar in the AUD/USD pair opened Monday with a gap down of almost 40 points in return for the events in Greece. Besides the European factor and the U.S. dollar strengthening, the Australian currency is pressurized by decrease in prices for liquefied natural gas, iron ore, decrease in Japanese demand as well as decline in Chinese stock market, and Australian Retail Sales statistics for May (+0.3% vs. 0.5% forecast).

The RBA decision on the discount rate is announced on Tuesday at 07:30 a.m. (GMT +3). The interest rate is expected to remain at 2%. Previous reduction of interest rates in Australia and RBA intention to ease the monetary policy had no tangible effect on decline in the Australian dollar. Therefore, it is hard to predict the market reaction this time. However, the volatility in pairs with the Australian dollar and in the pair AUD/USD is expected to be high.

ISM Non-Manufacturing and Labor Market Conditions Indexes are released today at 4:45 and 5:00 p.m. (GMT +3) respectively. Positive statistics strengthens the U.S. dollar in the AUD/USD pair.

Support and resistance

The pair broke through 0% Fibonacci (0.7590) correction to the decrease since July 2014.

OsMA and Stochastic lines on the timeframes, from the 4-hour to the month, indicate the further decrease.

The pair hit the last lows in 2008, at the level of 0.6000. Though this price is still 1500 points to go, given the fundamental factors, the movement in this direction in the medium term is likely to continue.

Nearest targets are 0.7450-0.7300.

Support levels: 0.7450, 0.7400.

Resistance levels: 0.7530, 0.7590, 0.7635.

Trading tips

Open short positions from the current price and from the levels 0.7530, 0.7590 with targets at 0.7480, 0.7450 and stop loss at 0.7620.

The breakout of 0.7635, supported by the indicators, should open long positions and the way first to 0.7700, 0.7720 and then to 0.7850, 0.8025.

Publication source
LiteForex information  LiteForex reviews

January 23, 2017
Can Supreme Court Ruling Help GBPUSD Remain Bullish ?
Tomorrow, Tuesday 24 January, around 09:30 GMT, the UK Supreme Court will release the Brexit lawsuit Ruling, on whether the UK Prime Minister Theresa May will need the UK parliament’s approval to invoke Article 50 of the Lisbon Treaty, to leave the EU...
January 20, 2017
Cautious EURUSD Ahead of ECB Press Conference
USD, and the US government bond yields, surged last night following Fed president Janet Yellen’s speech to the Commonwealth Club in San Francisco...
January 19, 2017
Is equilibrium out of reach?
Let’s check what’s going on with Oil before turning our attention to the Russian Ruble. “Black gold” is forming a reversal pattern next to the key level of 52.10. The only matter is that this pattern is above the horizontal level, but the 52.10 level can potentially become the neckline of our pattern...

FBS Rating
 FXTM Rating
Larson&Holz IT Ltd Rating
Tickmill Rating
OANDA Rating
FxPro Rating

OptionFair Rating
Binary.com Rating
Dragon Options Rating
IQ Option Rating
GTOptions Rating
OptionRally Rating