AUDUSD Vulnerable To The Downside
Russell Shor | Mar 05, 2019 00:05
Last month, Westpac revised their Australian GDP growth forecasts for 2019 and 2020 to 2.2% (2.6% previously). Furthermore, Westpac now expects a rate cut by the RBA in August and November of this year. Nomura has now followed suit, expecting the RBA to cut by 25 bps in July and 25bps in August. So, although the timing is different, the sentiment is the same.
The RBA will release its cash rate and statement at 3:30 am (GMT) and if it expresses dovishness as per the Westpac and Nomura expectations, the AUDUSD is certainly vulnerable to the downside as the market adjusts.
The below is the daily chart of the AUDUSD. Technically, the currency pair has charted a lower peak. If price drops below the green horizontal it will also have charted a lower trough i.e. a lower peak followed by a lower trough. This is the classical definition of a downtrend as per peak and trough analysis. We note that the RSI(9) is already below 50 which is indicative of an underlying bearish momentum (blue rectangle).
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.