Australian Dollar (AUDUSD) rebounds after RBA Meeting

Intermediate
  • Tuesday has already seen the Reserve Bank of Australia (RBA) leave interest rates unchanged at their meeting but signal again that a ‘gentle turning point’ appears to have been reached in the economy.
  • This has seen the Australian Dollar perform well versus the US Dollar overnight as the tone continues to shift to more positive, de facto less dovish and possibly slightly more hawkish.
  • In addition, further upbeat soundings on trade overnight into Tuesday have reinforced comments from late last week, which seen a broad risk on theme continue (Asian equity bourses pushing still higher, the S&P 500, the Nasdaq and Dow Jones Industrial Average hitting all-time peaks Monday, the DJIA joining the party, finally eclipsing its July peak).

AUDUSD positive tone above .6873/71

A dip Monday and a rebound overnight, but still a consolidation tone, activity “inside” Thursday’s range that saw a rally up through various resistances including the key peaks at .6883 and .6895, to sustain bull forces from both the latter October and mid-October upside extensions, and whilst above .6873/71 to keep the bias higher for Tuesday.

The mid-October surge just through the key .6809 level saw an intermediate-term shift to bullish.

For Today:                                                        

  • We see an upside bias for .6929; break here aims for .6955, maybe even .6991.
  • But below .6873/71 opens risk down to .6845 and maybe .6806.

Intermediate-term Outlook – Upside Risks: We see an upside risk for .6991/.7008.

  • Higher targets would be .7082 and .7206.
  • What Changes This? Below .6806 shifts the intermediate-term outlook back to neutral; through .6720 is needed for an intermediate-term bear theme.

4 Hour AUDUSD Chart

audusd chart

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

Comment on this video

Your email address will not be published. Required fields are marked *


Latest Related News

US Dollar negative tone

Timing reversal on US Dollar Index creates a negative in a sideways trend.EURUSD posts opposite, positive signal to the US Dollar IndexAussie (AUDUSD) continues to underperform Continued

The Forex Zone Forecasts – A solid US Dollar tone with risk on theme

The US Dollar has remained firm, though slightly hesitant driven by positivity from the US-Sino trade talks and upbeat comments from various Fed speakers on the US economy. The Forex Zone looks at day trade possibilities and forecasts for the major Forex rates; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and USDJPY. EURUSD: Prod at key 1.0989 A Thursday prod just below key 1.0989 for an intermediate-term shift to… Continued

Dollar Strength and Recovery

US Dollar Index Reverses back up in broad sideways trendNegatives on Euro (EURUSD)Aussie targets recent supports (AUDUSD) Continued

The Forex Zone – US Dollar strength resumes

The US Dollar has seen a strong recovery over the past week in reaction to the early November publication of the October US Employment report, which was very robust. The recovery has been assisted by broadly positive news flow from the US-China trade talks. The Forex Zone spotlights day trade views for the major Forex rates; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and USDJPY. EURUSD: Downside… Continued

US Dollar weakness and equity strength

USD The US Dollar fell slightly last week, an unusual week considering Powell was not as dovish as expected and Non-Farm Payrolls beat expectations Friday. The Dollar Index (DXY) fell 0.7% to close the week at 97.12. EUR A very quiet week on the Euro front as it remained sideways, Mario Draghi finally passed over his position as ECB chairman to Christine Lagarde as the… Continued

Forex Brokers in your location