AUDUSD: A descending channel is still in evidence
Selling pressure remains very strong, this week AUD down range between 1.75%-0.05% against most-traded currencies.
On the final day of the month, the AUD declines 0.20% against the GBP and CHF and 0.15% against USD and JPY (11.10AM AEST).
In anticipation of RBA to leave the interest rates changed at 1.50% in next week’s meeting, we forecast the AUDUSD will remain between 0.7200-0.7380 levels.
In addition, next week’s 2Q GDP will be the key risk event along with the US tariffs headlines.
Markets have become overly bearish on AUD after Westpac Bank raise the variable home loan rates. It is the first bank to raise mortgage rates by 14bps to 5.38%.
Supports are at 0.7240 and 0.7200. Below here, 0.7160-0.7140 its earlier swing lows and 0.7100 exists its 78.6 fib reaction of 0.6825-0.8135 rally. Note that the 161.8 fe of the A-B-C corrective structure pointing to 0.7130. Overall, between 0.7200-0.7100 the top-tier support grabs the eyeballs. Resistance seems to be at 0.7315 and 0.7365-0.7385.
If the cross manages to hold the 0.7200 levels, we could expect a short-term recovery to 0.7315 and 0.7350 levels. The erosion of the thresholds 0.7365 its 50MA is highly encouraging the sellers to square-off.
On the final day of the month, the AUD declines 0.20% against the GBP and CHF and 0.15% against USD and JPY (11.10AM AEST).
In anticipation of RBA to leave the interest rates changed at 1.50% in next week’s meeting, we forecast the AUDUSD will remain between 0.7200-0.7380 levels.
In addition, next week’s 2Q GDP will be the key risk event along with the US tariffs headlines.
Markets have become overly bearish on AUD after Westpac Bank raise the variable home loan rates. It is the first bank to raise mortgage rates by 14bps to 5.38%.
Supports are at 0.7240 and 0.7200. Below here, 0.7160-0.7140 its earlier swing lows and 0.7100 exists its 78.6 fib reaction of 0.6825-0.8135 rally. Note that the 161.8 fe of the A-B-C corrective structure pointing to 0.7130. Overall, between 0.7200-0.7100 the top-tier support grabs the eyeballs. Resistance seems to be at 0.7315 and 0.7365-0.7385.
If the cross manages to hold the 0.7200 levels, we could expect a short-term recovery to 0.7315 and 0.7350 levels. The erosion of the thresholds 0.7365 its 50MA is highly encouraging the sellers to square-off.