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3 May 2013
Forex: AUD/USD extends the upside above 1.0300
FXstreet.com (Barcelona) - The Aussie dollar keeps the upside momentum on Friday, as decent buying interest pushed the cross beyond the 1.0300 limestone after the US Payrolls.
In the view of Greg Gibbs, FX Strategist at RBS, opinions regarding a rate cut by the RBA next week are pretty divided, with the AUD holding well around 1.02. “As such, a rate cut is increasingly likely with rates falling globally, metals prices weaker and China recovery stalling… But this will not necessarily be enough to get AUD below its 1.02/1.06 range, as even if the RBA cut rates near term it remains a relative high yielder. As such, the current search for yield that is underpinning global equities will also underpin the AUD”, commented Gibbs.
AUD/USD is now up 0.61% at 1.0311 with the next resistance at 1.0330 (low Apr.30) followed by 1.0343 (MA55d) and finally 1.0349 (MA21d).
On the downside, a breach of 1.0295 (MA10d) would expose 1.0240 (low May 3) and then 1.0221 (low Apr.23).
In the view of Greg Gibbs, FX Strategist at RBS, opinions regarding a rate cut by the RBA next week are pretty divided, with the AUD holding well around 1.02. “As such, a rate cut is increasingly likely with rates falling globally, metals prices weaker and China recovery stalling… But this will not necessarily be enough to get AUD below its 1.02/1.06 range, as even if the RBA cut rates near term it remains a relative high yielder. As such, the current search for yield that is underpinning global equities will also underpin the AUD”, commented Gibbs.
AUD/USD is now up 0.61% at 1.0311 with the next resistance at 1.0330 (low Apr.30) followed by 1.0343 (MA55d) and finally 1.0349 (MA21d).
On the downside, a breach of 1.0295 (MA10d) would expose 1.0240 (low May 3) and then 1.0221 (low Apr.23).