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5 Aug 2013
AUD/USD hits 0.8860 channel line, 0.8875 next target
FXstreet.com (Barcelona) - On the back of disappointing retail sales data in Australia, AUD/USD has fallen by another 50/55 pips this Monday, visiting 0.8860, a level highlighted as potential target by sellers.
The futures rate market is now pricing chances of a rate cut by the RBA tomorrow at 102%, suggesting that investors are starting to price marginal chances of a 50bp cut. The fact that the market is expecting additional cuts is indicative of bearish pressure on the Australian Dollar set to continue.
On the upside, any recovery will meet graceful sellers at 0.90 up to 0.9040/50, last significant support broken. On the downside, 8775 becomes now the next target, according to Chris Capre, Founder at 2ndSkies.
The futures rate market is now pricing chances of a rate cut by the RBA tomorrow at 102%, suggesting that investors are starting to price marginal chances of a 50bp cut. The fact that the market is expecting additional cuts is indicative of bearish pressure on the Australian Dollar set to continue.
On the upside, any recovery will meet graceful sellers at 0.90 up to 0.9040/50, last significant support broken. On the downside, 8775 becomes now the next target, according to Chris Capre, Founder at 2ndSkies.