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26 Jan 2015
AUD/USD risks ahead this week on key events
FXStreet (Guatemala) - AUD/USD is trading at 0.7893 with a high of 0.7906 on a minor recovery from the new lows at 0.7857.
AUD/USD broke the 0.8000 level for the first time since 2009 last week,and has fallen to 0.7857 where it has started to stabilise. The market will be looking for Australia's CPI this Wednesday for Q4 while there is an increasing risk of a rate cut by the Reserve Bank of Australia as early as next month. Technically it is overextended though and analysts at Brown Brothers Harriman said, " On a medium term basis, we remain bearish. However, we suspect new shorts may be at a disadvantage. "
Meanwhile, we also get the FOMC this week for the January meeting. Analysts at Rabobank explained there could be fresh dovishness there to send a dog whistle signal to FX markets on USD (which the Fed is not supposed to have anything to do with). "If there is, we could see sharp reverse moves; if not, maybe even more USD strength. Either way, volatility is the name of the game."
AUD/USD broke the 0.8000 level for the first time since 2009 last week,and has fallen to 0.7857 where it has started to stabilise. The market will be looking for Australia's CPI this Wednesday for Q4 while there is an increasing risk of a rate cut by the Reserve Bank of Australia as early as next month. Technically it is overextended though and analysts at Brown Brothers Harriman said, " On a medium term basis, we remain bearish. However, we suspect new shorts may be at a disadvantage. "
Meanwhile, we also get the FOMC this week for the January meeting. Analysts at Rabobank explained there could be fresh dovishness there to send a dog whistle signal to FX markets on USD (which the Fed is not supposed to have anything to do with). "If there is, we could see sharp reverse moves; if not, maybe even more USD strength. Either way, volatility is the name of the game."